Cash budget is the budget which is prepared under the finance budget. It is an estimation of the expected cash receipts and cash payments during the budget period. By preparing cash budget it becomes possible for the organisation to predict whether at any point of time there will be excess or shortage of cash. Two main points should be remembered before preparing cash budget: Time period of the cash budget and the items to be included in the cash budget.
In the following figure, rectangle represents brand managers, circle represents cartoonist, triangle represents sculptors and square represents fathers. Which set of letters represents fathers who are either brand managers or cartoonists?
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