Top Answer
User Avatar
Wiki User
Answered 2014-06-13 22:36:07

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

User Avatar

Your Answer


Still Have Questions?

Related Questions

The primary purpose of a cash budget is to?

a detailed plan of future cash flows

What is the purpose of the 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.

The primary purpose of the cash budget is to allow the firm to anticipate the need for outside funding or excess funds to be invested?


What is the purpose of cash budget?

The main purpose of cash budget is to give business owners an overview of the cash flow within a specific time of the year. This helps to avoid unnecessary expenses and possible bankruptcy.

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.

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.

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.

What is the purpose of production budget?

purpose of production budget

Which budget is prepared last?

Cash Budget

Definition of flexible cash budget?

By definition, a flexible cash budget is a cash budget with wiggle room, in lay terms. It can be adjusted or flexed with varying circumstances as they arise.

What is a sample cash budget?

A sample cash budget will just indicate the various sources of revenue and how it is to be spent. A cash budget is influenced by previous income and expenditure ventures.

What was the Production Budget for Primary Colors?

The Production Budget for Primary Colors was $65,000,000.

Importance of a cash flow budget or report?

The importance of the cash flow budget or report is that it prevents impulse buying. The cash flow budget or report helps to the generation of various ways of cash flow in an organization.

What is the difference between budget and cash?

Budget is forecasting future cash needs and cash is most liquid form of money at present.

What use of a cash budget?

i want to know about monthly cash budget? i need some questions and then their answers

The need for an increase or decrease in short-term borrowing can be predicted by?

a cash budget.

What information is provided in the investing activities portion of the cash budget?

it can help protion the money on a cash budget

What is the primary cash crop of India?

The primary cash crop of India is rice.

Difference between cash budget and fund flow statement?

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 flow does not emphasis on a particular source and use. cash budget emphasis on financial pattern to meet seasonal and temporary cash need.

What is the difference between cash flow statement and cash budget?

A budget is a plan for how to spend/save money. A cash flow statement shows when and were the money was spent.

How is bad debt treated in the preparation of cash budget?

Bad debt from creditors is not included in cash outflow of a cash budget. It is treated at a receipt that has not been collected.

Explain how a fixed cash budget differs from a variable or flexible cash budget?

fixed budget is prepared at the start of the period and flexible budget is prepared at the end of period it is adjusted from current activity level of company...

What three budgets are included in a financial plan?

The capital budget, the cash budget, and the operating(master) budget.

What is the primary purpose for construction company?

what is the purpose of the construction industry

Why you need to prepare a cash flow budget?

Cash flow budget is prepared to predict the cash requirements in future so that whenever extra cash require it could be arranged before the requirement and vice-versa.