The type of budget that forecasts cash inflows and cash outflows for the next fiscal year is called the
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It is called the CASH budget. It may be for a nation, a firm or even a household.
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Cash budgeting foretells the cash inflow and allocates cash outflow for a specific period. Cash budgeting depends on accurate cash flow forecasts. The goal is to make a cash balance that is neither too much nor too little but allows the business to pay its day to day expenses.
Cash flow forecasts aim to predict future financial liquidity over a specific period of time. Short-term cash flow forecasting is based on actual cash receipt and disbursement data, while long-term cash flow forecasts are projections based on data from the income statement and balance sheet.
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