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    Question

    A uses the Cash Budget Method to determine which of the

    following? 
    A The company's long-term growth potential Correct Answer Incorrect Answer
    B The short-term liquidity and cash flow position of the company Correct Answer Incorrect Answer
    C The value of fixed assets of the company Correct Answer Incorrect Answer
    D The budget of the company for production activities of the year Correct Answer Incorrect Answer
    E The value of the company given its assets and liabilities Correct Answer Incorrect Answer

    Solution

    The Cash Budget Method is primarily used to determine the short-term liquidity and cash flow position of a business. It projects future cash inflows and outflows to assess the company's ability to manage short-term obligations  

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