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Role of cash budget in cash mgt?

Updated: 9/16/2023
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1. Cash budget plays a significant role in cash management because it helps the management to find out when they required excess cash and when they don't required enough cash to maintain as well as it helps the management to find out when they will have excess cash available so they can invest and earn interest as well as when they will have short of money to run day to day activities so that they can arrange money for critical times, if they don't maintain cash budget they will unable to find out this information well before time and they may have to face problems.

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