10 - What is the purpose of preparing the cash budget ? a) Determining profitability B) Determine resource allocation NS) Measuring employee performance D) Determining the amount of production TO) To determine in advance the cash needs and surpluses of the business for the period under consideration
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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What is the purpose of preparing the cash budget ? |
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Cash budget is a statement of the firm's planned inflows and outflows of cash that is used to estimate cash requirements for future.
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