ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cash flow statement summarizes all of the income and outgo (spending) over a certain time period, A budget is a written plan for saving, giving and spending. The cash flow statement is reflective of what has already taken place, and a budget is a proactive plan of what will take place.

Detailed explanation-2: -Another name for a budget is a cash flow plan. A zero-based budget is only used for people who have zero debt. It usually takes three months for your budget to begin working well.

Detailed explanation-3: -Cash flow budgeting 101. 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-4: -A cash flow statement is a financial statement that summarizes the amount of cash flowing into and out of a company. This includes all cash inflows a company receives from its ongoing operations and external investment sources.