Significance of Cash Budgeting:
Similar to working capital management, cash budgeting is the tool of finance. In finance, cash budgeting will manage inflow and outflow of cash fund. You can plan how to reimburse and when to pay your expenditures. With this you can raise your future capability to pay your debts. This following cash budget apparent that we will make plan according to cash that we will receive in future from our debtors and cash sale and after removing future expenses, the balance amount will illustrate as closing balance of cash. However this is just estimation that is helpful for future planning.
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A resource will only be considered as an asset and involved on the statement of financial position if it can be calculated in monetary terms, along with a appropriate degree of reliability.
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