The Cash Budget details how the business expects to go from the beginning cash balance to the desired ending cash balance.
What is cash budget and why is it important?
A financial budget is crucial, particularly for smaller businesses. It enables a business to decide how much credit it can provide to clients without experiencing liquidity issues. A cash budget assists in preventing a cash crunch during times when a business faces a large volume of expenses.
What are the two components of cash budget?
Income and Expenses are two main components of cash budget. The beginning balance displays your financial situation before you've taken into account any expenses or additional income. Any funds that your company receives, such as sales receipts, are considered cash collections. Cash disbursements demonstrate where you must spend some of your funds, like on employee compensation.
Learn more about cash budget: https://brainly.com/question/15310092
#SPJ4
