Consider the following conditions: (a) In your new job you are paid each month, instead of weekly. (b) The rate of interest on bonds and other financial assets rises. (c) An automatic teller machine (ATM) is installed next door and you have a debit card. (d) Bond prices are expected to fall. Would you decide to increase or decrease your average holding of money (i.e. cash and/or cheque deposit balances)? Which of the three motives for holding money is involved in each case?
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.
Consider the following conditions:
(a) In your new job you are paid each month, instead of weekly.
(b) The rate of interest on bonds and other financial assets rises.
(c) An automatic teller machine (ATM) is installed next door and you have a debit card.
(d)
Would you decide to increase or decrease your average holding of money (i.e. cash and/or
cheque deposit balances)? Which of the three motives for holding money is involved in each
case?
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