1COMPREHENSIVE BUDGET Table of Contents Cash Flow Budget as an alternative to Comprehensive Budget................................................2 References..................................................................................................................................3
2COMPREHENSIVE BUDGET Cash Flow Budget as an alternative to Comprehensive Budget Comprehensive budget is the budget which covers all the aspects of the financial life which includes projections of the incomes and the expenditures that are recurring as well as projections of the non recurring expenditures. Earnings from the wages, dividends and interest are considered as the recurring incomes and expenses such as living expenses, regular savings or the deposits of investments and the repayments of loan is considered as recurring expenditures. The expenses of non-recurring may be for capital improvement such as purchases of durable items and so on (Andor, Mohanty & Toth, 2015). The cash flow budget is the useful alternative for the comprehensive budget, when there is need for knowing the actual cash for the specific period of time. The cash flow budget is the budget which projects the specific aspects of the finances that is cash flows. The other kind of the speculated budget focuses on the one particular aspects of the cash flows. Therefore, the specialized budget is included in comprehensive budget because it is the part of the total activity of finance. Usually, it reflects the one particular aspects of activity in more detail such as effects of owning as well as maintaining the particular assets. Budget can be created for the particular assets by segregating the income and expenses from the comprehensive budget. Hence, if cash flow budget can be known from the comprehensive budget (Doye, 2016).
3COMPREHENSIVE BUDGET References Andor, G., Mohanty, S. K., & Toth, T. (2015). Capital budgeting practices: A survey of Central and Eastern European firms.Emerging Markets Review,23, 148-172. Doye, D. G. (2016). Budgets: Their use in farm management.