BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A cash budget is an estimation of the cash flows of a business over a specific period of time. This could be for a weekly, monthly, quarterly, or annual budget. This budget is used to assess whether the entity has sufficient cash to continue operating over the given time frame.

Detailed explanation-2: -A cash budget is a budget or plan of expected cash receipts and disbursements during the period. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payments. In other words, a cash budget is an estimated projection of the company’s cash position in the future.

Detailed explanation-3: -A cash budget is a summary of the expenses you expect to incur and the income you are likely to generate during the accounting period. Preparation of quarterly cash budgets enables you to forecast your income and expenses for three-month accounting periods.

Detailed explanation-4: -A cash flow forecast (also known as a cash flow projection) involves estimating cash coming in and going out based on past business performance.

Detailed explanation-5: -Cash budget is based on the cash concept, hence all the cash receipts and payments are considered irrespective of the period. Cash budget does not have any linkage with accrual concept.