I have been working on some Mnemoics for study and I have one for cash budgets and their uses.
MEAT
Cash budgets can Motivate employees as they can see how the firm is performing.
They can be used to control Expenditure in order to keep a positive cashflow.
Cash budgets can be used to take corrective Action by arranging a loan to ensure the firm does not go bust.
They can also be used to set Targets for managers, employees and departments to meet.
