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Which of the following is not a method of preparation of cash budget?

The three recognized methods of preparing a Cash Budget are the Receipts and Payments Method, the Adjusted Profit and Loss (or Adjusted Net Income) Method, and the Balance…

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Which of the following is not a method of preparation of cash budget?

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Correct answer D

The three recognized methods of preparing a Cash Budget are the Receipts and Payments Method, the Adjusted Profit and Loss (or Adjusted Net Income) Method, and the Balance Sheet (Proforma Balance Sheet) Method. The 'Cash Cycle method' is a concept used for estimating working capital requirements rather than a method of preparing a cash budget.

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