CASH BUDGET

Question 1

WHAT IS CASH BUDGET

Answer 1

A PREDETERMINED STATEMENT WHICH SHOWS SUMMARY EXPECTED CASH RECEIPTS AND CASH PAYMENT FOR PLANNED PERIOD

MELAYU,

cash budget ni tunjuk summary tntg apa yand duit kluar iaitu cash payment, apa yang duit masuk iaitu cash receipts pada masa yang trtntu

Question 2

EXAMPLE OF CASH RECEIPTS

Answer 2

CASH SALES, RECEIPTS FROM DEBTORS, INTEREST, DIVIDENDS, SALE OF ASSET, LOAN RECEIVED, RECEIPTS FROM ISSUE SHARE

Question 3

EXAMPLE OF CASH PAYMENTS

Answer 3

CASH PURCHASES, PAYMENTS TO CREDITORS, PAYMENT FOR INTEREST ON LOAN, PAYMENT FOR DIVIDENDS, PURCHASE OF ASSETS, LOAN REPAYMENT

Question 4

PURPOSES FOR PREPARING CASH BUDGETS

Answer 4

1. UNTUK ADA SUFFICIENT CASH TO COPE WITH BUDGETED ACTIVITIES
2. ADA LEBIHAN OR SURPLUS AKAN PERGI OR CHANNELED TO PROFITABLE INVESTMENTS
3. ANY KEKURANGAN OR LACK OR DEFICIENCY, OF CASH CAN BE REVEALED AND CAN FIX IT BY OBTAIN ADDITIONAL FINANCE

Question 5

WHAT IS CASH BUDGETS

Answer 5

A cash budget is a budget or plan of expected cash receipts and payments during the period.

a cash budget is an estimated projection of the company’s cash position in the future.

Question 6

Purpose of preparing Cash Budgets

Answer 6

To ensure there will be sufficient cash to cope adequately with the budgeted activities.

The budget will show if there is a deficiency of cash in the future in which

will show a cash surplus (extra cash)
that management may want to channel into profitable investments.

Question 7

a cash budget can be divided into two parts:

Answer 7

1) Receipts

2) Payments

Question 8

INCREMENTAL BUDGET

Answer 8

a budget prepared using a previous period’s budget

Question 9

CONTINUOUS BUDGET

Answer 9

plan that is always available for a specified future period

Question 10

ZERO BASED BUDGETING

Answer 10

based on what is currently needed, not the previous year’s budget.

preparing cash flow budgets and operating plans every year must start from scratch (zero) with no pre-authorized funds