cash budget

Question 1

definition

Answer 1

a budget is forecasting too that estimate the cash I flows and cash outflows of a business over specific period

Question 2

purpose

Answer 2

a) to insure there is enough cash to meet operational levels

b) to determine the liquidity position of the business in the short term

Question 3

cash receipts vs incomes

incomes

Answer 3

an income is any revenue earned but not necessarily receibved by the business

Question 4

cash receipts vs incomes

reciepts

Answer 4

a reciept is any cash/money recieved whether an income or non income

Question 5

cash receipts vs incomes

cash incomes

Answer 5

cash sales
rent income
bad debts recovered

Question 6

cash receipts vs incomes

non cash incomes

Answer 6

trading stock surplus
profit on sales of vehicle

Question 7

cash receipts vs incomes

non cash reciepts

Answer 7

capital
taking out loan
fixed deposit maturing

Question 8

cash payments vs Expenses

cash payments

Answer 8

cash paid for any item be it an expense or not

Question 9

cash payments vs Expenses

expense

Answer 9

any loss/cost incurred by the business but is not necessarily paid for

Question 10

cash payments vs Expenses

cash expense

Answer 10

salaries
telephone
water and electricity

Question 11

cash payments vs Expenses

non cash expenses

Answer 11

trading stock deficit
discount allowed
depreciation
bad debts

Question 12

cash payments vs Expenses

non expense payments

Answer 12

drawings
repayment of loan
cash float
investing on fixed deposit
purchasing fixed assest
petty cash

Question 13

capital budget

Answer 13

shows