The cash budget identifying the time line for cash inflows and outflows included in divisional business plans is a part of the financial plan.

Question

Quizplus · Accepted Answer

The cash budget, which outlines the timing of cash inflows and outflows, is an important component of the financial plan for each division within the company. It helps to ensure that there is enough cash available to cover expenses and investments and to avoid potential cash shortages.

The Cash Budget Identifying the Time Line for Cash Inflows