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Cash Budgets

Jorden Allcock Introduction to Accounting Bachelors Degree Inglés 4 fichas

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1The Cash Budget is prepared after all...Operational and Cash Budgets have been prepared to provide an overview on financial health
2Why is Profit not equal to Cash Flow?1. Sales Revenue includes Sales made on credit
2. Expenses are recorded when costs are consumed, not when paid for
3. Cash spent on inventory is only recorded as expense when goods are sold
4. Depreciation/amortisation are non-cash expenses
5. Cash flows from financial activities are not recorded in SPL
3What are the Main Sections in a Cash Budget?Receipts
Payments
Balances
4Key Features of a Cash Budget are that it ...1. Looks at the future
2. Does not measure profit
3. Measures liquidity (availability of cash)
4. Shows where cash is coming from and when
5. Shows how cash is spent and when
6. Draws attention to deficits which need to be financed/surplus which can be utilised

Descripción: Bachelors Degree (Unit 9 - Budgeting and Cash Budgets) Introduction to Accounting Fichas sobre Cash Budgets, creado por Jorden Allcock el 09/03/2016.
Creado por: Jorden Allcock
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