answersLogoWhite

0


Best Answer

so you make sure you don't spend all your money at once and not have any for later, just a guide line for what you should spend.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the purpose of preparing a cash budget?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the primary purpose of a cash budget?

The primary purpose of a cash budget is to limit spending. A cash budget can also help people track their spending.


What is the purpose of cash budget?

Main purpose of cash budget is to determine that when there is cash inflow and outflow from business and at what time company needs extra cash or have extra cash available to invest.


What is the purpose of preparing a voucher?

To safeguard all cash disbursements


The primary purpose of a cash budget is to?

a detailed plan of future cash flows


What is a cash budget and outline the purpose of the cash budget?

An estimation of cash inflows and outflows for a business or individuals for a specific period of time. It is often prepared to assess whrther the entity has sufficient cash to fulfill regular operations or too much cash is being left in unproductive capacities.


How are debt collectors fees treated when preparing a cash budget?

Frequently they will be classed as professional fees similar to those for accounts and legal teams


What is a cashflow budget?

Budgeted cash flow statement is the estimated cash flow statement for planning purpose before the actual activity starts


What is the difference between a cash budget and a budgeted profit and loss account?

Cash budget estimates the cash inflows and outflows and net cash available for specific period while budgeted profit and loss is the estimated statatement for planning purpose before actual activity starts.


Who is a president when preparing the budget?

Barry is that you?


The office of management and budget has the primary responsibility for doing what?

preparing the budget


How do you calculate accruals and non-cash transactions in preparing statement of cash flows?

non cash transaction are adjusted while preparing for cash flow using indirect method.


What information is needed in order to prepare a cash budget?

A cash budget begins with the starting cash balance to which cash inflows are added to get cash available.