Budgeting Question:
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What is cash budget?


Cash budget is the budget which is prepared under the finance budget. It is an estimation of the expected cash receipts and cash payments during the budget period. By preparing cash budget it becomes possible for the organisation to predict whether at any point of time there will be excess or shortage of cash. Two main points should be remembered before preparing cash budget: Time period of the cash budget and the items to be included in the cash budget.

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List the requirements for the successful implementation of Budgetary Control?Which methods are used to prepare cash budget?