Flashcards
Cash Budgets
Cards in this deck (4)
- 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
Information
- Description
- Bachelors Degree Introduction to Accounting (Unit 9 - Budgeting and Cash Budgets) Flashcards on Cash Budgets, created by Jorden Allcock on 09/03/2016.
- Created by
- Jorden Allcock
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