Cash Budget

A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment.  Its primary purpose is to provide the status of the company's cash position at any point of time. Additionally, the cash budget helps in prioritizing payments in the budget period. It can identify any times where there may be a shortage of cash. This will allow the business to plan ahead and arrange extra funding such as a bank overdraft. It can help to regulate expenses.


Still want to learn more about Cash Budget

Checkout other online study materials on SolutionInn

Related solved question answer on Cash Budget

Join SolutionInn Study Help for
1 Million+ Textbook Solutions
Learn the step-by-step answers to your textbook problems, just enter our Solution Library containing more than 1 Million+ textbooks solutions and help guides from over 1300 courses.
24/7 Online Tutors
Tune up your concepts by asking our tutors any time around the clock and get prompt responses.
Post a Question

Answers from our experts for your tough homework questions

Relevant accounting tutors