The primary purpose of the cash budget is to allow the firm to anticipate the need for outside funding or excess funds to be invested.

Name: The primary purpose of the cash budget is to allow the firm to anticipate the need for outside funding or excess funds to be invested.
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Question

Quizplus · Accepted Answer

The cash budget helps a firm to plan and manage its cash inflows and outflows, which enables it to anticipate the need for outside funding or excess funds to invest in profitable opportunities. Thus, option A is correct.

The Primary Purpose of the Cash Budget Is to Allow