Cash Budget
Financial plan showing anticipated cash inflows/outflows.
Formula
Closing Balance = Opening Balance + Net Cash Flow
Real World
A seasonal ice cream business creates a cash budget showing low inflows in winter months, allowing the owner to arrange a short-term overdraft before the shortfall hits.
Exam Focus
In cash budget calculations, always carry the closing balance forward as the next month's opening balance — a common error that costs multiple marks.
How well did you know this?