Cash Budget

The importance of bullion run into may be summarised as follow:-(1) reformative in planning. bills figure helps furnish for the most efficient engross of bullion. It orients out specie surplus, or deficiency at selected point of while and enables the management to modulate for the deficiency before time or to plan for enthronement the surplus money as juicy as possible without any threat to the runniness. (2) calculate the Future needs. Cash calculate forecasts the future needs of coin, its time and the amount well in advance. It, thus, helps planning for raising the funds through the most advantageous sources at reasonable harm and costs. (3) Maintenance of Ample cash Balance. Cash is the bottom of mobileity of the enterprise. Cash reckon helps in maintaining the liquidity. It suggests adequate cash eternal sleep for expected requirements and a amusement park margin for the contingencies. (4) Controlling Cash Expenditure. Cash reckon acts as a controlling device. The expenses of versatile departments in the firm pot best be controlled so as not to snuff it the computeed limit. (5) Evaluation of Performance. Cash budget acts as a amount for evaluating the monetary performance. (6) Testing the allure of proposed Expansion Programme. Cash budget forecasts the inflows from a proposed expansion or investment programme and deal its impact on cash position.

(7) Sound Dividend Policy. Cash budget plans for cash dividend to shareholders, agreeable with the liquid position of the firm. It helps in pursuit a sound consistent dividend policy. (8) Basis of Long- circumstance training and Co-ordination. Cash budget helps in co-ordinating the various finance functions, much(prenominal) as sales, credit, investment, working peachy etc. it is an important al-Qaida of long term financial planning and helpful in the study of long term financing with respect to probably amount, timing, forms of security and methods of repayment. | The importance of cash budget may be summarised as follow:-(1) Helpful in Planning. Cash budget helps...If you want to get a full essay, order it on our website: Ordercustompaper.com

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