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Question

Cash budget is a ___________.

A
Long term budget
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B
Short term budget
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C
Routine budget
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D
None of these
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Solution

The correct option is B Short term budget
The cash budget is one of the primary tools used in short term financial planning in order to plan for cash flows. It is generally done on month on month basis. A good cash budget allows the company to see short term financial needs and opportunities for the business.

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