The cash budget is based on the residual method of accounting.

Name: The cash budget is based on the residual method of accounting.
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The cash budget is based on the cash method of accounting, which focuses on actual cash inflows and outflows rather than accruals or projected income and expenses. The residual method refers to calculating profits after expenses are subtracted from revenues and is not directly related to the cash budget.

The Cash Budget Is Based on the Residual Method of Accounting