The primary purpose of the cash budget is to plan accounts payable payments.

Question

Quizplus · Accepted Answer

The primary purpose of the cash budget is to plan and track cash inflows and outflows in order to ensure that there is enough cash available to meet financial obligations and cover operating expenses. While accounts payable payments are part of the cash outflows that need to be considered in a cash budget, they are not the primary purpose of the budget.

The Primary Purpose of the Cash Budget Is to Plan