A cash budget is one of the major budgets prepared in the budgeting process. Cash budgets include the budgeted cash receipts, budgeted cash disbursement, and budget cash balances at the end of each period. The cash budget helps the company to manage the cash and avoid situations of the cash surplus and cash deficit. Hence, the principle purpose of the cash budget is to know the surplus/ deficit of cash at the end of the year so that the company can adjust the surplus and cover the deficit. To prepare: The cash budget for the upcoming fiscal year.

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Answer 1

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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 8.7E

To determine

Concept Introduction:

A cash budget is one of the major budgets prepared in the budgeting process. Cash budgets include the budgeted cash receipts, budgeted cash disbursement, and budget cash balances at the end of each period. The cash budget helps the company to manage the cash and avoid situations of the cash surplus and cash deficit. Hence, the principle purpose of the cash budget is to know the surplus/ deficit of cash at the end of the year so that the company can adjust the surplus and cover the deficit.

To prepare: The cash budget for the upcoming fiscal year.

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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 8.7E

To determine

Concept Introduction:

A cash budget is one of the major budgets prepared in the budgeting process. Cash budgets include the budgeted cash receipts, budgeted cash disbursement, and budget cash balances at the end of each period. The cash budget helps the company to manage the cash and avoid situations of the cash surplus and cash deficit. Hence, the principle purpose of the cash budget is to know the surplus/ deficit of cash at the end of the year so that the company can adjust the surplus and cover the deficit.

To prepare: The cash budget for the upcoming fiscal year.

Expert Solution & Answer

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Answer 3

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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 8.7E

To determine

Concept Introduction:

A cash budget is one of the major budgets prepared in the budgeting process. Cash budgets include the budgeted cash receipts, budgeted cash disbursement, and budget cash balances at the end of each period. The cash budget helps the company to manage the cash and avoid situations of the cash surplus and cash deficit. Hence, the principle purpose of the cash budget is to know the surplus/ deficit of cash at the end of the year so that the company can adjust the surplus and cover the deficit.

To prepare: The cash budget for the upcoming fiscal year.

Expert Solution & Answer

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Check out a sample textbook solution

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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 8.7E

To determine