Budget is forecasting future cash needs and cash is most liquid form of money at present.
what is the difference and similarity between cash budget and long term financial planning
There is no difference between them.. Their difference only is how you understood about financial budget.. :)
Cash Flow Statement shows the actual flow of cash& Cash Flow Budget shows you the estimated flow. For more information you can listen to the radio station specifically dedicated to explaining Cash flow on Achieve radio.
1. cash flow statement is a technique of past analysis where as cash budget is a technique of future financial forecasting.2. cash flow covers a period of 1 year. in cash budget it is broken into monthly weekly segments.3.cash flow does not emphasis on a particular source and use. cash budget emphasis on financial pattern to meet seasonal and temporary cash need.
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.
capital expenditure budget is a part of cash budget.cash budget involves managerial activities while capital expenditure budget involves day to day activities may be for long range or short range
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.
Differential cash is the difference in cash due between selecting between different alternative options or projects.
explain the difference between cash and credit transaction
cash balancing
Nothing.
iiiustrate by means of a diagram the budget planning process show clearly the difference between a functional budget and a financial budget