Management Accounting - Cash Budgets

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  • Created by: Flossy15
  • Created on: 28-12-18 11:21
What is cash budget money received known as??
It's known as CASH IN/RECEIPTS
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What is cash budget money paid out known as??
It's known as CASH OUT/PAYMENTS
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What does the closing cash balance made from??
OPENING CASH BALANCE + CASH IN - CASH OUT
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What is a cash budget??
It's a finanical statement drawn up to FORECAST future financial needs.
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What does a cash budget show??
It shows all likey payments, payments in the future, final cash/bank balances at the end of the time period, predicted cash shortages.
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What is a cash budget used for??
PRedict future borrowing needs, decide when to purchase non - currnet assets and how to pay for them, Make decisions about investments or funds.
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What are the alternative methods of payments for non-currnet assets to aviod a cash flow problem??
Arrange to lease or hire equipment, arrange to pay for equipment in instalemts - hire purchase.
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What are the benefits of a cash budgets
Highlight cash flow problems, predicts future cash surpluses, predict future cash shortages and arrange overdrafts/loans, plan of future, used to support applications for loans/show potenial investors and allows you to set targets
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Card 2

Front

What is cash budget money paid out known as??

Back

It's known as CASH OUT/PAYMENTS

Card 3

Front

What does the closing cash balance made from??

Back

Preview of the front of card 3

Card 4

Front

What is a cash budget??

Back

Preview of the front of card 4

Card 5

Front

What does a cash budget show??

Back

Preview of the front of card 5
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