It is very important for a company to have an accurate cash budget because a lot of assets a company may have are not liquid, and some sales that the company expects to receive will not be received immediately. Yet, companies still need to cover their expenses. If you just look at your total assets, you might think you have more than enough money to cover your expenses, but that could be misleading because you might not actually have immediate access to those funds. Thus, to be able to adequately cover your expenses, you need to have an accurate depiction of how much cash you have, and how much cash you are willing to spend. How respond to this comment?

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