Purpose of the cash budget Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you provide the valid approach to solving this financial accounting question with suitable standards?

Davis Industries' manufacturing overhead includes $8.20 per machine hour for variable manufacturing overhead and $186,000 per period for fixed manufacturing overhead. What is the predetermined overhead rate for the denominator level of activity of 5,200 machine hours?

Can you solve this general accounting problem with appropriate steps and explanations?

Answer 2

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Answer 6

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Answer 7

Chapter 8, Problem 10Q

To determine

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 8 - What is a budget? What is budgetary control?Ch. 8 - Prob. 2Q Ch. 8 - What is meant by the term responsibility...Ch. 8 - What is a master budget? Briefly describe its...Ch. 8 - Why is the sales forecast the starting point in...Ch. 8 - “As a practical matter, planning and control mean...Ch. 8 - Prob. 7Q Ch. 8 - What is a self-imposed budget? What are the major...Ch. 8 - How can budgeting assist a company in planning its...Ch. 8 - Prob. 10Q

Purpose of the cash budget Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Solution Summary: The author explains the principal purpose of the cash budget, which is to evaluate cash inflow and outflow for a specific period of time.

Concept explainers

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Want to see the full answer?

Chapter 8 Solutions

Purpose of the cash budget Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Solution Summary: The author explains the principal purpose of the cash budget, which is to evaluate cash inflow and outflow for a specific period of time.

Concept explainers

To explain: Purpose of the cash budget Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.

Want to see the full answer?

Chapter 8 Solutions

To explain: Purpose of the cash budget

Introduction: The cash budget is prepared to see that an organization has sufficient cash or not to operate an organization. In the other words, it can be said that cash budget is prepared to evaluate the cash inflow and outflow for a specific period of time.