Final answer:
Cash budgets aid in avoiding superfluous idle cash and preventing unforeseen cash shortages. They help in managing cash flow, tracking income and expenditure, and achieving financial objectives by identifying unnecessary expenses.
Step-by-step explanation:
True: Cash budgets are instrumental in ensuring that a business or individual avoids unnecessary idle cash and unexpected cash deficiencies. By projecting cash inflows and outflows, one can plan for expected and unexpected events, keeping a balance between too much or too little cash on hand.
Maintaining financial control means keeping track of all expenses and income. Budgeting is critical for making sound and purposeful financial decisions which contribute to personal economic success. It effectively manages cash flow and prevents the costs associated with overdrafts, ensuring stability even in the broader context of national and global economies.