Cash budget represents ------------
a) Cash receipts b) Cash payments c)Cash receipts and payments d) Cash money
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Answer:
I guess c) would be the answer
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A cash budget represents cash receipts and payments.
- A cash budget is a very important accounting report which is used by smaller companies to analyse their cash requirements in the future period.
- It helps a company to know the amount of credit they can learn to the customers without having the scarcity of cash.
- It is a plan to analyse the expected cash receipts and the payments that would be done for a particular period of time. It includes all cash inflows and outflows like sale of goods and services or the purchase of raw materials or payments of loans.
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