Define each of the following terms: f. Cash budget; target cash balance

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Define each of the following terms: f. Cash budget; target cash balance

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Define each of the following terms:
f. Cash budget; target cash balance

Explanation & AnswerSolution by a verified expert

Verified Answer

Cash budget - It is a schedule that shows an inflow and outflow of cash for a business over a specific period of time.
 
Target cash balance - It is the ideal amount of cash balance that the company aims to maintain in order to conduct its operations smoothly.

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