Question

27: What are the various methods of estimating cash?

A. Receipts and payment method
B. Adjusted profit & loss method
C. Balance sheet method
D. All of the above
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Answer 1

Answer:

receipt and payment method

Explanation:

here cash is received from cash sales receipt from deptors sale of fixed assets and investment, issue of receipts are forecasted. The cash is applied for wage paying , salaries , overheads , capital and revenue expenditure are forecasted. it is noteworthy that outstanding payment and accrued incomes are not recorded here.

Hope this helps you