ECONOMICS

Detailed explanation-1: -A cash budget is a company’s estimation of cash inflows and outflows over a specific period of time, which can be weekly, monthly, quarterly, or annually. A company will use a cash budget to determine whether it has sufficient cash to continue operating over the given time frame.

Detailed explanation-2: -A plan that shows the cash balance on hand at the beginning of a budget period, expected cash flow from operations, cash flows from investing activities, cash flows from financing activities, and an ending cash balance is called a(n): Cash budget.

Detailed explanation-3: -A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n): Cash budget.

Detailed explanation-4: -Opening Balance (what you have in bank at the start) plus Total Income (what money comes in) minus Total Expenses (what money goes out) equals Closing Balance (what money you have left). The Opening Balance is the amount of cash at the beginning of the month (1st day of month).

Detailed explanation-5: -Cash flow budget One of the biggest components of business budgeting is managing and forecasting cash flow. Your cash flow, or cash, budget gives you a prediction of the money that comes in or goes out of a business during a certain period of time (e.g., a year).