Which of the following statements is/correct regarding the Cash Budget? I. The cash budget is a statement of a firm's planned inflows and outflows of cash that is used to estimate its long-term cash requirement. II. Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS). III. A cash budget gives the financial manager a clear view of the timing of a firm's expected profitability over a given period. IV. Since depreciation and other noncash charges represent a scheduled write-off of an earlier cash outflow, they should not be included in the cash budget, though depreciation charges will affect the taxes that a firm pays. a. II and III b. I and IV c. IV only d. I only

Q: The budget committee: a. Directs and coordinates budget preparation. b. All of the above answers are…

A: The question is multiple choice question and related to Budgetory Control. Required  Choose the…

Q: Zero-based budgeting refers to: a. Budgeting from the ground up as though the budget process were…

A: Budgeting means a process of estimating or forecasting about future expenses and income of the…

Q: What is a cash budget, and how is this statementused by a business? How is the cash budget affected…

A:

Q: Which one of the following will appear in the cash budget but not in the budgeted statement of…

A: The cash budget is a financial statement that shows the expected cash inflows and outflows of a…

Q: QUESTION 14 When preparing a cash budget, once a firm has estimated its cash receipts the firm must…

A: There are various steps in preparation of cash budget.

Q: udget is usually thought of as a means of planning for future financing needs. Why would a cash…

A: Cash money is very important in the business because money blocked in long term assets is of no use…

Q: Which of the following statements is/correct regarding the Cash Budget? The cash budget is a…

A: Cash budget - It is an estimate of cash inflow and cash outflow  of a company . Cash budget are…

Q: Which of the following is not considered a benefit of the budgeting​ process?   a. Gives managers…

A:

Q: Which of the following statement(s) related to budgets is/are TRUE? O In preparing a master budget,…

A: A budget is prepared with a view to estimate the revenues and expenses of the firm over a particular…

Q: Why is it important that a firm prepares a budget and how they analyze the ongoing performance? What…

A: Budgeting is a financial plan that helps the organization in effective utilization of its resources.…

Q: Cash budget is the most important of all the functional budget because; cash is required for the…

A: The cash budget preparation is very much important for small organization to track the liquidity…

Q: What type of budget pertains to cash receipts and disbursements? O Cash Budget O Operations Budget O…

A: Meaning:-It can be termed as estimation of revenues and expenses that can happen in a future. In a…

Q: “Cash budgets must be prepared before the operating income budget.” Do you agree? Explain.

A: Operating Budget: The operating budget is that budget which is prepared to plan all the operating…

Q: A cash flow budget can be used to   A.    estimate when and how much money will need to be borrowed…

A: Option d is correct.

Q: The "Cash Budget"   a)is used to predict future surpluses & shortages of cash, allowing the…

A: A Cash Budget is a detailed plan that shows the anticipated inflows and outflows of cash within a…

Q: What are the basic benefits and purposes of developing pro forma statements and a cash budget?

A: Budgeting and preparing the pro forma statements are two different accounting processes. But…

Q: Explain statement of cash flows proforma and its significance in budgeting. Provide a hypothetical…

A: The purpose of cash flow budget is to show the insight of cash inflow and outflow on a monthly basis…

Q: With one exception, the following objectives are accomplished by budgeting. Which of these…

A: Budgeting is to make planning for the future and budget provides the direction and guidelines for…

Q: What is the purpose of a budget in financial management? a) To record and report financial…

A: Financial management refers to the process of planning, organizing, directing, and controlling the…

Q: Requirements and Value of Budget Reporting and Auditing Explain the requirements for…

A: The practice of gathering and presenting financial data associated with a budget is known as budget…

Q: When preparing a budget, A.GST is a necessary cost of doing business B.GST is only necessary for…

A: GST refers to Goods and Services Tax. It is an indirect tax levied on the value of goods and…

Q: profile-image 1. Budgeting is an important part of a manager's planning and control…

A: 1) True.  Budgeting is an important part of manager's planning and control responsibilities in both…

Q: Which one of the following budgeted items will appear in the cash budget but not in the budgeted…

A: Budget for cash: A budget for cash forecasts the sum of money that a company expects to earn and…

Q: Which of the following statements is the intended goal or outcome of a traditional line-item budget?…

A: A traditional line-item budget is a type of budget format that presents the financial information by…

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.