The primary purpose in preparing a cash budget is

Question

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The primary purpose of preparing a cash budget is to plan and forecast the cash inflows and outflows for a specific period, usually a month or a year. It helps businesses plan for any potential cash shortfalls and make informed decisions about when to make purchases or investments. While a cash budget can be useful for profit planning and risk analysis, its primary purpose is cash planning. Estimating sales is not the primary purpose of a cash budget, as it is based on past sales data and not future projections.

The Primary Purpose in Preparing a Cash Budget Is