LO 7.3Which of the financial budgets is the most important? Why?

The correct answer is: Cash Budget.

Explanation:

A cash budget is a plan for the inflows and outflows of cash for a business or an individual. It is often considered to be the most important financial budget because it allows firms to better manage their cash positions and avoids unexpected cash shortfalls taking steps to mitigate the problem by securing a loan or aggressively pursuing unpaid accounts receivables.