XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropriate action to be taken in such a situation? Repay long term loans Increase Debtors and stock to boost sales All of the above Purchase new fixed asset None of the above

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.