Budgeting Flashcards
1
Q
General layout of cash budget
A
Column 1: Receipts and Payments
Column 2 - X: Months/Years
Column X (Last): Total
2
Q
What segments fall under receipts?
A
Debtors - current
Debtors - following
3
Q
What segments fall under payments?
A
Purchases Labour + Overhead Fixed Dep. Net Surplus Op. Balance Cl. Balance
4
Q
4 advantages of cash budgeting?
A
1) Planning
2) Corrective action
3) Performance Measurement
4) Coordination
5
Q
What cash budgeting advantage can be used to prevent machinery issues?
A
Performance Measurement
6
Q
What cash budgeting advantage can be used to prevent system errors?
A
Coordination
7
Q
Ending balance =
A
Beginning + Receipts - Disbursements
8
Q
Disbursement is
A
Money spent
