Formidable Objectives Of Cash Budget
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Objectives of cash budget. Cash budget is an inflow and outflow of cash estimate prepared by management in a business for a specific period of time. Cash management means optimal cash maintain in a business. Objectives of Cash Management.
Cash budget is define as. A cash budget can be prepared for a short period says monthly weekly or even daily and also for a long period says half-yearly yearly. Cash budget in a firm is prepared to accomplish the following objectives.
The management can plan for. Budgets help to restrain the empire building efforts of executives. It is to be divided into two partsone part of probable receipts and the second part of probable payments.
It is a key component of a. I The following sales figures are for the months of November 2015 to June 2016. This includes financing working capital needs managing debts paying vendor bills collecting accounts receivables controlling currency positions.
This could be for a weekly monthly quarterly or annual budget. The objective of preparing cash budget is to enable the management to meet its cash obligations as and when they fall due and to keep idle cash to a minimum level. Iii It provides knowledge of excess cash requirement and how the same can be arranged.
Objectives of Preparing Cash Budget. Ii It provides information about future probable receipts and payments. Cash budgets are prepared keeping in mind all the financial resources.
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