The primary purpose of the cash budget is to allow the firm to anticipate the need for outside funding.

Name: The primary purpose of the cash budget is to allow the firm to anticipate the need for outside funding.
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Quizplus · Accepted Answer

The cash budget helps the firm to forecast the cash inflows and outflows, which enables them to estimate how much cash they will need and when they will need it. By doing this, the firm can plan ahead and arrange for outside funding if necessary.

The Primary Purpose of the Cash Budget Is to Allow