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    Cash Budget

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    Are cash budgets implicitly geared towards short-term financial goals? Explain your answer.

    Is it important to monitor a cash budget only in times of a liquidity crisis? Why or why not?

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    Are cash budgets implicitly geared towards short-term financial goals? Explain your answer.

    One of the important goals of cash budget is to tell the company about the liquidity position of the organizations. It helps in achieving short term financial goals that is to have right liquidity is there in the organization. It helps in having sufficient cash to meet its operational obligations and also the profitability is not compromised.

    Is it important to monitor a cash budget only in times of a liquidity crisis? Why or why not?

    Properly preparing your cash budget will show how cash flows in and out of your business. Also, it may then be used in planning your short-term credit needs. In today's financial world, you are required by most ...

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