The two tools that are particularly useful in understanding the cash requirements of a business and in estimating how much financing a new business will require are the cash flow break-even analysis and the cash budget.

Question

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Both the cash flow break-even analysis and the cash budget are important tools for understanding a business's cash requirements and estimating financing needs for a new business. The cash flow break-even analysis helps determine a business's minimum sales level required to cover expenses, while the cash budget provides a detailed projection of cash inflows and outflows over a specific period of time.

The Two Tools That Are Particularly Useful in Understanding the Cash