Cash Budget : A cash budget is the combination of the cash collections and cash payment schedule of the organization for the given accounting period. The cash budget records the summary of all the cash flow transactions related to the operating, investing and financing activities. The cash budget also includes the non-cash transactions like depreciation expense, issuance, receipt of stock dividends, non-collectible accounts expense and gains and losses on the sale of assets. To explain : The response to the shortage of cash in the business.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 9, Problem 9.4BYP

To determine

Cash Budget:

A cash budget is the combination of the cash collections and cash payment schedule of the organization for the given accounting period. The cash budget records the summary of all the cash flow transactions related to the operating, investing and financing activities. The cash budget also includes the non-cash transactions like depreciation expense, issuance, receipt of stock dividends, non-collectible accounts expense and gains and losses on the sale of assets.

To explain: The response to the shortage of cash in the business.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Pauline Cooper is a registered dietitian and foodservice director at Memorial Hospital. Increasingly, the hospital's marketing efforts emphasized (give importance) its skill in treating diabetic patients. As a result, the number of diabetic meals served by Pauline's staff has been increasing. As a professional member of the hospital's management team, Pauline has been asked to report on how the hospital's diabetic treatment marketing efforts have affected her area. 1. How important is it that Pauline have historical records of the type (i.e., vegetarian, low sodium, gluten-free, and the like) of meals served by her staff and not merely(not only) the number of meals served. Why? 2. Assume that Pauline's per meal cost has been increasing because diabetic meals are more expensive to produce than regular meals. Could Pauline use sales histories to estimate the financial impact of serving additional diabetic meals in the future? How? 3. What are the other reasons that managers in a food…

Toyota organizes every year two blood donation camps in Nizwa and Muscat. This activity is an example of managements attitude towards what?. choose correct answer a.Competitors b.Customers c.Community d.Clients

(Please show your work and organize/structure your responses appropriately in Excel) Coronation makes a line of antiseptic and conditioning cream for the medical community. The company stakeholders decided to develop a retail line. However, because of their conservative nature, the CEO will introduce only one of the new products for this year. If successful, they will expand in future years. They selected to sell the conditioning cream in a tube. The company will sell the product to wholesalers in boxes of 24 tubes for $16.00 per box. Since there's available capacity, the company will not incur additional fixed charges to produce the product. However, to allocate a fair share of the company's current fixed costs to the new product, the product will absorb a $135,000 fixed charge. Using estimated sales and production of 100,000 boxes of conditioning cream as the standard volume, the accounting department developed the following costs per box of 24 tubes: Direct labour Direct materials…

Answer 2

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 9, Problem 9.4BYP

To determine

Cash Budget:

A cash budget is the combination of the cash collections and cash payment schedule of the organization for the given accounting period. The cash budget records the summary of all the cash flow transactions related to the operating, investing and financing activities. The cash budget also includes the non-cash transactions like depreciation expense, issuance, receipt of stock dividends, non-collectible accounts expense and gains and losses on the sale of assets.

To explain: The response to the shortage of cash in the business.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 9, Problem 9.4BYP

To determine

Cash Budget:

A cash budget is the combination of the cash collections and cash payment schedule of the organization for the given accounting period. The cash budget records the summary of all the cash flow transactions related to the operating, investing and financing activities. The cash budget also includes the non-cash transactions like depreciation expense, issuance, receipt of stock dividends, non-collectible accounts expense and gains and losses on the sale of assets.

To explain: The response to the shortage of cash in the business.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 9, Problem 9.4BYP

To determine