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Cash budget definition — AccountingTools [1]
A cash budget itemizes the projected sources and uses of cash in a future period. This budget is used to ascertain whether company operations and other activities will provide a sufficient amount of cash to meet projected cash requirements
The inputs to the cash budget come from several other budgets. The results of the cash budget are used in the financing budget, which itemizes investments, debt, and both interest income and interest expense.
The Sources of Cash section contains the beginning cash balance, as well as cash receipts from cash sales, accounts receivable collections, and the sale of assets. The Uses of Cash section contains all planned cash expenditures, which comes from the direct material budget, direct labor budget, manufacturing overhead budget, and selling and administrative expense budget
Which of the following statements concerning the cash budget is true? a. The cash budget summarizes all economic activities during the budget period. b. The cash budget summarizes all cash receipts an [2]
Which of the following statements concerning the cash budget is true? a. Which of the following statements concerning the cash budget is true?
The cash budget summarizes all cash receipts and disbursements during the budget period.. The cash budget summarizes all sales and expenses during the budget period.
Budget is a management’s estimation of the sales, production, cash movement in a period of time. This budget will be subjected into re-evaluation on a periodic basis to make necessary changes that will lead to more accurate budget.
Which of the following describes the production budget? a. It aids in planning to ensure the company has adequate inventory and cash on hand. b. It provides the quantity of finished goods to be produc [3]
Which of the following describes the production budget? a. Which of the following describes the production budget?
It provides the quantity of finished goods to be produced during a budget period.. It depicts the breakdown of sales on the basis of terms and conditions of the collection of sales revenue.
Production processes are essential because they enable the government to evaluate the GDP of an economy to determine benefits and various challenges affecting the processes. The discovery of challenges facing production processes is important because it enables businesses and governments to implement strategies that provide suitable solutions to such challenges.
SOLVED: Which of the following describes the cash budget? A. It aids in planning to ensure the company has adequate inventory on hand B. It depicts the breakdown of sales based on terms of collection. [4]
Get 5 free video unlocks on our app with code GOMOBILE. It aids in planning to ensure the company has adequate inventory on hand
It helps in planning to ensure the business has adequate cash. It captures the variable and fixed expenses of the business.
The cash budget shows all of the business’s receipts and payments for the year ahead.B. The cash budget shows the forecasted profit for the year.C
Which of the following statements concerning the cash budget is true? a) The cash budget summarizes all cash receipts and disbursements during the budget period. b) The cash budget summarizes all ec [5]
Which of the following statements concerning the cash budget is true? a) The cash budget…. Which of the following statements concerning the cash budget is true?
b) The cash budget summarizes all economic activities during the budget period.. c) The cash budget summarizes all revenues and expenses during the budget period.
A budget is prepared based on past trends and estimations made before the period starts as to how much should be the expenses, sales, purchases, etc. Each item of expense is budgeted in a separate budget and one such budget is cash budget which provides the details of cash expected to be held at the end of the period
Cash Budget [6]
The cash budget is prepared after the operating budgets (sales, manufacturing expenses or merchandise purchases, selling expenses, and general and administrative expenses) and the capital expenditures budget are prepared. The cash budget starts with the beginning cash balance to which is added the cash inflows to get cash available
If this balance is below the company’s required balance, the financing section shows the borrowings needed. The financing section also includes debt repayments, including interest payments
The ending cash balance is the cash balance in the budgeted or pro forma balance sheet. In keeping with the budgets previously discussed for the Pickup Trucks Company, the cash budget in this example will be prepared on a quarterly basis
National 5 Business management Revision [7]
A cash budget is a document produced to help a business manage their cash flow. A cash budget is prepared in advance and shows all the planned monthly cash incomings (receipts) and any planned cash outgoings (payments).
This will allow the business to plan ahead and arrange extra funding such as a bank overdraft.. Any months where expenses are high will be highlighted by a cash budget.
This will allow a business to plan more effectively and make better decisions.. Cash budget for Jill’’’s beauty salon for January – March
Cash budget test questions [8]
Businesses need to manage their cash flow to enable them to operate effectively. It is important to be able to interpret a cash budget and justify suitable solutions to cash flow problems.
Which of the following cash flow solutions would reduce the cost of purchases?. What term describes all the money coming into a business?
Which of the following will reduce the cash balance of a business?. What terminology describes all the money coming into and going out of a business?
Cash Budgeting with Electronic Payment Integration [9]
Companies in China may opt to concentrate the control of cash in one centralized cash center that sets up the cash budget plan for the year for the organizational units throughout the group. This allows the cash center to centrally distribute cash and control payments, thereby ensuring liquidity across the entire group
Electronic Payment Integration for China allows you to support these processes by setting up a central cash budget plan with different cash budget cycles (for example, weekly and monthly) for the responsible organizational units. You can also control cash consumption through the integration with its payment processing and bank receipt processing functions.
This user defines the structure of the budget plan and creates the company-specific liquidity tree structure. This can be done using a Microsoft Excel-based template delivered with
04 Budgets Flashcards by Natallie Kh [10]
Long term planning (3-5 years), usually by senior management, relates to broader issues like business takeovers, expansion plans, deletion of business segments, and radical product/service development.. Short term (usually one year), evaluates whether there will be enough resources available to achieve strategic plan and whether strategy leads to profits thereby creating value for entity
(Simply the quantitative expression of an entity’s plans.). Translate strategies and operating plans into master budget
Which of the following describes a way in which budgeting can assist in decision making?. Determining inventory levels, identifying expected cash shortages, setting production targets for managers
What is a cash flow budget: budgeting cash flow [11]
Need to learn how to build a cash flow budget but not sure where to start? Your business needs consistent cash flow to maintain operations. Learn how to build a cash flow budget PDF to help you monitor your business’s financial health.
You can use the information to see if you have enough cash coming in to maintain regular operations over the given time frame.. It can also give insight into how to allocate your budget effectively
A cash flow budget is beneficial when running a business. For both personal and business matters, it can help you see your income and the expenses you have throughout the year to ensure you have enough money to pay for necessary expenses — and still have extra savings.
Sources
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- https://homework.study.com/explanation/which-of-the-following-describes-the-production-budget-a-it-aids-in-planning-to-ensure-the-company-has-adequate-inventory-and-cash-on-hand-b-it-provides-the-quantity-of-finished-goods-to-be-produced-during-a-budget-period-c-it-depicts-the-break.html#:~:text=Answer%20and%20Explanation%3A,produced%20during%20a%20budget%20period.
- https://www.numerade.com/ask/question/which-of-the-following-describes-the-cash-budget-a-it-aids-in-planning-to-ensure-the-company-has-adequate-inventory-on-hand-b-it-depicts-the-breakdown-of-sales-based-on-terms-of-collection-c-36637/
- https://homework.study.com/explanation/which-of-the-following-statements-concerning-the-cash-budget-is-true-a-the-cash-budget-summarizes-all-cash-receipts-and-disbursements-during-the-budget-period-b-the-cash-budget-summarizes-all-ec.html
- https://www.cliffsnotes.com/study-guides/accounting/accounting-principles-ii/budgets/cash-budget
- https://www.bbc.co.uk/bitesize/guides/z33h2nb/revision/3
- https://www.bbc.co.uk/bitesize/guides/z4njhbk/test
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- https://www.brainscape.com/flashcards/04-budgets-7818918/packs/12685861
- https://www.adobe.com/acrobat/hub/what-is-a-cash-flow-budget.html
