Respuesta :
Cash inflow in cash budgeting comes mainly from A.Collection on accounts receivable
to obtain as many customers as possible, many companies utilize customer's payment in the form of credit.
In creating a cash flow statement, the payment that customers made each period will be considered as a cash inflow.
to obtain as many customers as possible, many companies utilize customer's payment in the form of credit.
In creating a cash flow statement, the payment that customers made each period will be considered as a cash inflow.
Cash inflow in cash budgeting comes mainly from collection on accounts receivable.
What is cash inflow?
Cash inflow refers to the money going into a business which could be from sales, investments or financing. In the case where the cash inflow is greater than cash outflow, the cash flow is positive. Thus, Cash inflow refers to the gains you receive from an investment you made.
What is cash budget?
A cash budget is a document which is produced in order to help a business manage their cash flow. A cash budget forecasts future cash balances in order to identify potential deficits and surpluses.
The cash budget is prepared after the operating budgets and this budget is the most important of all the functional budgets. Thus, Cash inflow in cash budgeting comes mainly from collection on accounts receivable.
Hence the answer was given and explained above.
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