Budgeting (Grade 10 NSC Matric Accounting): Flashcards
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Cash budget definition
Cash budget definition
Tool tracking anticipated money movement in/out of business
Primary purpose of cash budget
Primary purpose of cash budget
Forecasting future cash position
Three sections of cash budget
Three sections of cash budget
Cash receipts, cash payments, cash balance
Cash receipts meaning
Cash receipts meaning
Actual cash the business receives
Cash payments meaning
Cash payments meaning
Actual payments made by the business
Cash balance calculation formula
Cash balance calculation formula
Opening balance + Surplus (or - Deficit) = Closing balance
Closing balance to next month relationship
Closing balance to next month relationship
Closing balance of one month = opening balance of next month
Non-cash items excluded from cash budget
Non-cash items excluded from cash budget
Depreciation, bad debts, discounts, profit/loss on assets
Why depreciation excluded from cash budget
Why depreciation excluded from cash budget
It's a paper entry, not an actual cash transaction
Bad debts vs bad debts recovered
Bad debts vs bad debts recovered
Bad debts excluded; bad debts recovered included (cash in)