BUDGETING

BUDGETING

1. CASH BUDGETING

   • Budgeted cash flow statement: Accounting report that shows estimated of cash receipts and payments and bank balance at a particular future period

2. PREPARING A BUDGETED CASH FLOW STATEMENT

   • The basic role of a BCFS is to determine if at the end of a given period, a business is likely to have a shortage or a surplus of cash

3. BUDGETED INCOME STATEMENTS

   • accounting report that shows estimates of revenues, expenses and profit over a specific future period
   • Allows management to investigate the likely profitability of the business

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