A cash budget is often more valuable as a SHORT-term rather than a LONG-TERM financial forecasting vehicle.

Question

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A cash budget is a tool used to forecast a company's cash inflows and outflows, allowing them to predict their short-term cash position. Since cash budgets are focused on tracking cash flow on a daily, weekly, or monthly basis, they are more beneficial for short-term financial planning rather than long-term forecasting. For long term forecasting, other financial statements such as income statements, balance sheets, and cash flow statements are used.

A Cash Budget Is Often More Valuable as a SHORT-Term