Budgeting Question:
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Which methods are used to prepare cash budget?

Answer:

Following methods are used to prepare cash budget:
★ Receipts and payments method: This method is useful for short term estimations. Under this method items should be categorized in two ways- Operating Cash Flows and Non Operating Cash Flows.
★ Balance Sheet method: This method is useful for long term estimations.
★ Adjusted Profits/Losses Method: This method is useful for long term estimations.

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