Cash Budget A Tool Of Management Accounting Youtube In this lesson, we go through a thorough example of the cash budget (question and answers). we explain what the cash budget is and why we do the cash budget . This video explains what the cash budget is in managerial accounting and demonstrates how to put together a cash budget with a comprehensive example.edspira.
Gr 11 Accounting Cash Budget Youtube This video explains the underlying concepts and format of the cash budget. The cash budget totals the cash receipts and adds it to the beginning cash balance to determine the available cash. from the available cash, the cash payments are subtracted to compute the net cash excess or deficiency of cash for the quarter. this amount is the potential ending cash balance. organizations typically require a minimum cash balance. Hence, the total cash over the period will be $110,000. its projected cash outflows include: hence, the total forecasted outflow amounts to $ 57,000. therefore, the forecasted ending budgeted cash balance will be $53,000 ($110,000 – $57,000). now let’s put this information into format. The following are the merits of the cash budget: 1. provides information about various sources of cash receipts and the use of cash. 2. provides information about future probable receipts and payments. 3. provides information about excess cash requirements and how these can be arranged. 4.
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