Purpose of cash budgets Flashcards
1
Q
can identify…
A
times there maybe a shortage of cash so they can plan ahead and arrange extra funding
2
Q
can help…
A
regulate expenses highlighting months where expenses are high
3
Q
will clearly show…
A
when a business has a cash surplus or deficit to allow for better and more effective decision making
4
Q
can be shown to…
A
potential lenders/investors to secure investment
5
Q
can be used to set…
A
targets/budgets for individual departments which will motivate employees
