Task 1 - Theory

You are required to supply comprehensive answers to the following theory questions. One to two sentences is not generally sufficient. Ensure all aspects of the question are addressed and correct numbering is maintained.

a) What is the key purpose of a cash budget?

b) Explain the significant differences between budgeted income and expenses as opposed to budgeted cash flows.

c) What areas the advantages of using flexible budgeting and performance reporting methods rather than static reporting?

d) Explain the role of financial risk assessments and contingency planning in the budget process.

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