The principal purpose of the cash budget is to see how much cash the company will have in the bank at the end of the year. Do you agree? Explain

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Anonymous Profile
Anonymous answered

DISCUSS HOW A  COMPANY MANAGER CAN USE THE INSTRUMENTALITY OF CASH VOLUME PROFIT ANALYSIS TO EFFECT THE FOLLOWING DECISION

MAKE OR BUY DECISION

KEEP OR DROP DECISION

ACCEPT OR REJECT DECISION

anne roberts Profile
anne roberts answered

Cash budget is usually prepared month wise, budget period being a quarter or half of a year. It is an estimate of cash flows during a month to reflect the balance at the end of each month. The main purpose is cash management to match the receipts and payments and to have a desired surplus at the end of each month. If it is seen that the payments of a particular month could not be met with the possible receipts,budget tells you sufficiently in advance, by a negative figure, that extra funds will have to be arranged for from outside sources. 

Arthur Wright Profile
Arthur Wright answered
I disagree and would say its more for seein and using what a company has on hand for daily use to make sure that there may be some left at the end of the year, otherwise if used unwisely, there wont be any cash at the ned nor a company standing

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