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  • Cash Budget

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    vanjo payot
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    A cash budget details expected cash receipts and payments over a period of time, usually monthly or quarterly. It helps ensure a business has enough cash on hand to make required payments. Ms. Rian, who manages cash for a small business, does not prepare annual cash budgets. Instead, she relies on records of cash activity and the checking account balance. However, when receipts are slow, she postpones supplier payments and occasionally delays paying employee salaries, which can hurt the business's relationships and finances.

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    Original Title

    10.-Cash-Budget

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    A cash budget details expected cash receipts and payments over a period of time, usually monthly or quarterly. It helps ensure a business has enough cash on hand to make required payments. Ms. Rian, who manages cash for a small business, does not prepare annual cash budgets. Instead, she relies on records of cash activity and the checking account balance. However, when receipts are slow, she postpones supplier payments and occasionally delays paying employee salaries, which can hurt the business's relationships and finances.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views21 pages

    Cash Budget

    Uploaded by

    vanjo payot
    A cash budget details expected cash receipts and payments over a period of time, usually monthly or quarterly. It helps ensure a business has enough cash on hand to make required payments. Ms. Rian, who manages cash for a small business, does not prepare annual cash budgets. Instead, she relies on records of cash activity and the checking account balance. However, when receipts are slow, she postpones supplier payments and occasionally delays paying employee salaries, which can hurt the business's relationships and finances.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 21

    Cash Budget

    Cash Budget

    Is a budget that details the cash receipts


    and cash payments a business expects in a
    specific period of time.
    It is prepared on a monthly or quarterly
    basis for a year.
    Cash Budget: Case study
    Ms. Rian manages the cash function of a small
    business. She does not believe in preparing
    annual cash budgets because she says that
    keeping good records of cash receipts, cash
    payments and the current checking account
    balance is an accurate method of ensuring there
    is always enough cash to make the required
    payments.
    Cash Budget: Case study

    When receipts are slow, she postpones


    paying suppliers and occasionally delays
    paying the salaries of her three employees
    for a few days.
    Cash Budget: Case study

    Let us discuss the advantages and


    disadvantages of Ms. Rian’s practices.
    Parts of Cash Budget
    Formula of Cash Budget
    Example Cash Budget
    Example of Cash Budget
    To Compute for Cash Budget
    Cash Receipts
    Cash Disbursements
    3. Subtract the cash disbursement from cash
    receipts to get the cash flow.

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