What is the difference between cash budget and revenue budget?

In the conventional budget, revenue and expenditure are shown on accrual basis and those flows of funds are excluded which do not belong to the government. In the cash budget, all the flows of funds to and from the government on actual payment basis are shown, inclusive of funds which are not owned by the government.

What is the difference between revenue and cash flow?

Revenue is the money a company earns from the sale of its products and services. Cash flow is the net amount of cash being transferred into and out of a company. Both revenue and cash flow are used to help investors and analysts evaluate the financial health of a company.

What is difference between cash budget and flexible budget?

Cash budget is a budget or forecast which predicts the cash position of an organization in terms of receipts and payments. Flexible budget is a budget in which the expenses adjust to the level of sales or output – in contrast, a fixed budget is one which does not vary with the level of sales or output.

What is cash budget example?

Example of Cash Budget Its cash balance at the beginning of the budget period is US$ 20000. Therefore, the cash balance at the end of the budgeted period will be US$ 50000 (US$ 150000 – US$100000). We see that the closing balance of cash with the company is more than the opening balance.

What is the difference between cash receipts and revenue?

The key difference between revenues and receipts is that revenues are reported as sales on the income statement, while receipts increase the cash total on the balance sheet.

What is the difference between revenue and cash receipts?

What are the two components of revenue budget?

The budget is divided into two parts — (i) Revenue Budget, and (ii) Capital Budget. (i) The Revenue Budget comprises current revenue receipts and current expenditure met from such revenues.

What is the purpose of a cash budget?

A cash budget is an estimation of the cash flows of a business over a specific period of time. This could be for a weekly, monthly, quarterly, or annual budget. This budget is used to assess whether the entity has sufficient cash to continue operating over the given time frame.

Is cash a revenue or expense?

Account Types