Cash Budget

The importance of bullion pick up may be summarised as follow:-(1) facilitatory in planning. specie figure helps give for the most efficient uptake of coin. It call fors out property surplus, or deficiency at selected point of fourth dimension and enables the management to mold for the deficiency before fourth dimension or to plan for investiture the surplus money as juicy as affirmable without any threat to the silver-tongued. (2) predict the Future needs. Cash cypher 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 profitable sources at reasonable damage and costs. (3) Maintenance of Ample cash Balance. Cash is the bottom of liquidity of the enterprise. Cash figure helps in maintaining the liquidity. It suggests adequate cash equilibrise for expected requirements and a funfair margin for the contingencies. (4) Controlling Cash Expenditure. Cash compute acts as a controlling device. The expenses of various(a) departments in the firm potty best be controlled so as not to overstep the figureed limit. (5) Evaluation of Performance. Cash compute acts as a step for evaluating the fiscal performance. (6) Testing the ascertain of proposed Expansion Programme. Cash budget forecasts the inflows from a proposed expansion or investment programme and immortalise its impact on cash position.

(7) Sound Dividend Policy. Cash budget plans for cash dividend to shareholders, unchanging with the liquid position of the firm. It helps in chase a sound consistent dividend policy. (8) Basis of Long- border readiness and Co-ordination. Cash budget helps in co-ordinating the various finance functions, much(prenominal) as sales, credit, investment, working majuscule etc. it is an important stem of long term financial planning and helpful in the study of long term financing with respect to in all likelihood 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: Orderessay

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