Cash budgeting is the process of estimating a company’s future financial cash flows, determining the timing and amounts of cash inflows and outflows over a specific period. This technique helps organizations manage their liquidity, ensuring they have sufficient cash available to meet obligations while also identifying potential shortfalls. Cash budgeting is crucial for planning, forecasting, and ensuring the effective management of cash resources, which connects directly to maintaining adequate cash levels in the context of managing cash and marketable securities.
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