MANAGEMENT

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: -The three types of budgets are a surplus budget, a balanced budget, and a deficit budget. The state budget is a financial document including income and expenditure for the year. An income-and expense-based spending plan is referred to as a budget.

Detailed explanation-3: -A cash budget is a document produced to help a business manage their cash flow. A cash budget is prepared in advance and shows all the planned monthly cash incomings (receipts) and any planned cash outgoings (payments).

Detailed explanation-4: -Capital budget is used to determine whether an organisation’s long term investment plans are worth pursuing whereas cash budget determines when income will be sufficient to cover expenses and when the company will need to seek outside financing.