Cash budgets help avoid unnecessary idle cash and unexpected cash deficiencies.

Question

Quizplus · Accepted Answer

Cash budgets help businesses to plan and manage their cash flow effectively, taking into account expected cash inflows and outflows. By having a clear picture of their cash position, businesses can avoid holding unnecessary idle cash and also ensure that they have enough cash to meet their upcoming expenses and obligations, thus avoiding unexpected cash deficiencies.

Cash Budgets Help Avoid Unnecessary Idle Cash and Unexpected Cash