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A forecast is a statement of the expected outcome of a given set of events. It follows then that a financial forecast is a statement of the expected outcome in financial terms of a given set of (assumed) events. A budget is a financial forecast based on a plan set by management. Thus, a business may prepare a budget that forecasts a revenue of, say, USD 10 million and a net income of USD 1 million, if all its strategies and actions happened as planned, and assumptions made (such as interest rate) occur. The budget is used by the management to control the business going forward. On the other hand, a financial forecast that is not a budget may be produced by the business for a different purpose, e.g. to provide a bank creditor with an idea of how the business will perform going forward. Such forecast can be varied depending on how optimistic or conservative the maker wants it to be. Thus, for the same business in the example above, a conservative forecast may be prepared for an investor that indicates a revenue of USD 9 million and a net income of USD 750,000.
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What is the difference between cash budget and cash forecast?
Cash forecast is the estimate of the timing and amounts of cash inflows and outflows over a specific period (usually one year). A cash flow forecast shows if a firm needs to borrow, how much, when, and how it will repay the loan. Also called cash flow budget or cash flow projection.
What is the difference between financial budget and a financial budget?
There is no difference between them.. Their difference only is how you understood about financial budget.. :)
What is a forward looking statement?
A budget forecast.
What is the similarity and difference between the cash budget and long term financial planning?
what is the difference and similarity between cash budget and long term financial planning
What is main difference between capital budget and revenue budget?
While the capital budget and revenue budget are both budgets, the capital budget is incorporated for the long term. A revenue budget is made for the short term.
How does a budget differ from a forecast?
Budget is more accurate than forecast. A budget can be had from historic data whereas forecast looks into the future trends.
What is the difference between cash budget and cash forecast?
Cash forecast is the estimate of the timing and amounts of cash inflows and outflows over a specific period (usually one year). A cash flow forecast shows if a firm needs to borrow, how much, when, and how it will repay the loan. Also called cash flow budget or cash flow projection.
What is the difference between financial budget and a financial budget?
There is no difference between them.. Their difference only is how you understood about financial budget.. :)
What is a forward looking statement?
A budget forecast.
What is The usual starting point for a master budget?
the sales forecast or sales budget.
Illustrate by means of a diagram the budget planning process show clearly the difference between a functional budget and a financial budget?
iiiustrate by means of a diagram the budget planning process show clearly the difference between a functional budget and a financial budget
What is a budget variance?
A budget "variance" is the difference between planned and actual performance.
What is budget variance?
A budget "variance" is the difference between planned and actual performance.
What is the similarity and difference between the cash budget and long term financial planning?
what is the difference and similarity between cash budget and long term financial planning
How do you forecast budget in front office department in a hotel?
yes
What is the difference between budget center and cost center?
Japtj
What is the glacial budget?
the difference between glacial accumulation and glacial waste
