Business Finance (Pass Criteria) - Desklib

FINANCE (PASS
CRITERIA)

Table of Contents
TASK 1.1.........................................................................................................................................3
Prepare Cash budget for Surya trading for six months ending on 31st December 2022.........3
TASK 2.1.........................................................................................................................................5
A. Explain if cash and profits similar. Can there be any business transactions which does not
consider an immediate movement of cash..............................................................................5
B. Differentiate between.........................................................................................................6
C. Explain the following.........................................................................................................7
REFERENCES..............................................................................................................................10

TASK 1.1
Prepare Cash budget for Surya trading for six months ending on 31st December 2022.
Cash budget: Cash budget can be explained as an estimation of cash flow of a business
over a certain time period. It could be for a month, year or on quarter basis as well. Such budgets
are useful In examining whether the business is having adequate funds available for managing
and continuing operational activities for a given time frame (Amos and et.al, 2021). A company's
cash budget is an essential metric which would help in maintaining financial stability, it helps the
company to compute a variety of range for several planning purposes as well. The primary
objective and aim of a cash budget is to forecast futuristic cash balance in relation to identify and
find potential surpluses and deficits.