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