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Preparing the Financial Budgets

Preparing the Financial Budgets - considered to be the most...

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Preparing the Financial Budgets As shown in Illustration 20-2 , the financial budgets consist of the capital expenditure budget, the cash budget, and the budgeted balance sheet. We will discuss the capital expenditure budget in Chapter 23 ; the other budgets are explained in the following sections. Cash Budget The cash budget shows anticipated cash flows. Because cash is so vital, this budget is often
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Unformatted text preview: considered to be the most important financial budget. The cash budget contains three sections (cash receipts, cash disbursements, and financing) and the beginning and ending cash balances, as shown in Illustration 20-14 . Illustration 20-14 Basic form of a cash budget Helpful Hint Why is the cash budget prepared after the other budgets are prepared?...
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