Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Explain the benefits of preparing a cash budget.

Explain the benefits of preparing a cash budget.

Answers

Lydia
? It shows whether the business will have a surplus of cash which will allow them to plan future purchases
? It shows whether the business will have a deficit which will allow them to make adjustments to spending
o Or arrange an injection of cash to avoid the deficit
? To make comparisons between predicted and actual figures this will help monitor the performance of the business
? Highlighting periods where expenses may be high will allow action to be taken to control spending
? It aids decision making as it provides cash flow information for decisions to be based on
lydiajane74 answered the question on May 31, 2018 at 12:36

Answer Attachments

Next: Describe ways an organisation can become environmentally responsible.

Previous: Describe the impact on an organisation of having poor cash flow

View more Business Studies Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions