10 NO, ALTHOUGH THIS IS CLEARLY ONE OF THE ARE
9-10 No, although this is clearly one of the
are: (1) the views and judgments of persons
from all levels of an organization are repre-
purposes of the cash budget. The principal pur-
pose is to provide information on probable cash
sented in the final budget document; (2) budget
needs during the budget period, so that bank
estimates generally are more accurate and reli-
loans and other sources of financing can be an-
able, since they are prepared by those who are
ticipated and arranged well in advance.
closest to the problems; (3) managers generally
are more motivated to meet budgets which they