A cash collections budget is focused on the timing of cash receipts.

Question

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A cash collections budget is designed to plan and monitor the timing of cash inflows from sales, loans, investment income, or other sources. This type of budget is used to estimate how much cash will be received during a particular period and when it will be received. It helps a business to manage its cash flow, make important financial decisions, and ensure that it has enough cash on hand to meet its obligations. Therefore, a cash collections budget is focused on the timing of cash receipts.

A Cash Collections Budget Is Focused on the Timing of Cash