ECONOMICS

Detailed explanation-1: -A cash flow budget estimates your business’s cash flow over a specific time period. You can use the information to see if you have enough cash coming in to maintain regular operations over the given timeframe. It can also give insight into how to allocate your budget effectively.

Detailed explanation-2: -What Is a Cash Budget? 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-3: -Financial budgeting is the process of planning company expenses and revenues for a time period. Budgets set forth the plans of management in financial terms. This includes allocating financial resources and identifying available cash flows for required spending.

Detailed explanation-4: -The Financial Budget represents the second of the two components of the Master Budget (the Operating Budget represents the first component) and includes the following components: the Capital Budget, the Cash Budget, and the budgeted Balance Sheet.

Detailed explanation-5: -Simply, the financial budget includes the cash budget, capital expenditure budget, and budgeted balance sheet and does not include the budgeted cash flow statement.