Cash Budget

The importance of bullion figure may be summarised as follow:-(1) Helpful in planning. Cash figure helps furnish for the most efficient use of bullion. It points out cash surplus, or deficiency at selected point of time and enables the management to say for the deficiency before time or to plan for investiture the surplus money as juicy as possible without any threat to the liquidity. (2) Forecasting the Future needs. Cash cipher forecasts the future needs of funds, its time and the amount well in advance. It, thus, helps planning for raising the funds through the most profitable sources at reasonable terms and costs. (3) Maintenance of Ample cash Balance. Cash is the bottom of liquidity of the enterprise. Cash calculate helps in maintaining the liquidity. It suggests adequate cash balance for expected requirements and a funfair margin for the contingencies. (4) Controlling Cash Expenditure. Cash figure acts as a controlling device. The expenses of various departme nts in the firm chamberpot best be controlled so as not to buy the farm the computeed limit. (5) Evaluation of Performance. Cash budget acts as a metre for evaluating the financial performance. (6) Testing the Influence of proposed Expansion Programme. Cash budget forecasts the inflows from a proposed expansion or investment programme and enter its impact on cash position.(7) Sound Dividend Policy. Cash budget plans for cash dividend to shareholders, consistent with the liquid position of the firm. It helps in pursuit a sound consistent dividend policy. (8) Basis of Long-term readying and Co-ordination. Cash budget helps in co-ordinating the various finance functions, such(prenominal) as sales, credit, investment, working capital etc. it is an important stand of long term financial planning and helpful in the study of long term financing with respect to credibly amount, timing, forms of security and methods of repayment. | The importance of cash budget may be summ arised as follow:-(1) Helpful in Planning. C! ash budget helps...If you want to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay