Methods of cash flow budgeting, Managerial Accounting

Assignment Help:

Cash budget is a detailed budget of income and cash expenditure including both capital and revenue items. For control reasons the year's budget is usually phased in smaller periods for illustration: monthly or quarterly. Because the cash budget is related with liquidity it should reflect changes in closing and opening balances of debtors and creditors. This must also focus on another cash inflows and outflows. The cash budget demonstrates cash flows arising from asset structure and the profit and the operational budgets. A cash budget can be prepared through considering all the expected payments and receipts for budget period. All the cash outflow and inflow of all functional budgets involving capital expenditure budgets are seems. Adjustments and accruals in accounts will not influence the cash flow budget. Anticipated cash inflow is inserted to the opening balance of cash and all cash payments are deducted from this to attain the closing balance of cash.

Format of Cash Budget

Period:  First Quarter of 2005

55_METHODS OF CASH FLOW BUDGETING.png


Related Discussions:- Methods of cash flow budgeting

Two jobs during the period, The Work in Process account for Monty's Company...

The Work in Process account for Monty's Company contained the following entries: Work in Process Account Debit of $40,000 for direct raw materials Debit of $60,000 for direct labor

Case study, 1 Describe the impact of different types of standards on motiva...

1 Describe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compa

Identification of decision packages - zero base budgeting, Identification o...

Identification of decision packages - Zero base budgeting Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum

What value can management derive from a balance scorecard, What value can m...

What value can management derive from a Balance Scorecard? How does the management accountant contribute?

Lease accounting, question:lease accounting implicit rate unknown,20%increm...

question:lease accounting implicit rate unknown,20%incremental rate leaseterm 4 years,find implicit rate using trial and error method.i know nothing about trial and error method in

Define inputted cost, Determine the Inputted cost It is hypothetical c...

Determine the Inputted cost It is hypothetical cost required to be considered to make costs comparable. It is the owner of the factory charges rent of the factory to the cost

Budgetary controls, BUDGETARY CONTROLS Control in a business is the pro...

BUDGETARY CONTROLS Control in a business is the process of guiding organization into viable patterns of activity in an environment. The main purpose of a control system is to m

How would you characterize the politics of food, Given the persistent probl...

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

Advanced acc, Pike Corporation paid $100,000 for a 10% interest in Salmon C...

Pike Corporation paid $100,000 for a 10% interest in Salmon Corp. on January 1, 2010, when Salmon''s stockholders'' equity consisted of $800,000 of $10 par value common stock and

Order acceptance or rejection, Excess machine hours 20,000. Received offers...

Excess machine hours 20,000. Received offers from two companies to buy 210,000 units of F at 0.60 and 300,000 units of D at 0.70. Estimated costs for the two products are;

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd