Final answer:
The statement is true. A cash budget is a planning tool for managing cash flows by detailing anticipated cash inflows and outflows. It serves both businesses and individuals in financial planning and ensures cash availability for necessary expenditures.
Step-by-step explanation:
TRUE: The cash budget indeed is a schedule of expected cash receipts and disbursements. It outlines all anticipated cash inflows and outflows over a given period of time. Having a cash budget is crucial for businesses as it assists in managing cash flows, ensuring sufficient liquidity for operations, and planning for future cash needs. It is an essential tool for making informed financial decisions, such as determining when to save for significant expenditures, including capital investments or identifying potential shortfalls that may require financing.
The conception of a budget, whether for an individual or for the federal government, is fundamentally the same. It should reflect both revenues and proposed expenditures, as epitomized by the federal budget process wherein the President submits a budget to Congress consisting of expected receipts and planned outlays. For individuals, a budget helps to prioritize spending, save for goals, and allocate resources effectively.