Answer to Question #78588 in Accounting for Liam Johnston

Question

What needs to be covered when researching information for the cash flow budget?

Answer 1

When researching information for a cash flow budget, you must consider the purpose and method of writing this document.
The cash flow budget is made upright in solving the task of ensuring the deficit of the budget of funds and for determining the directions of investment of free cash funds. The budget of funds can also be made by indirect method. This format of the cash budget is used for another purpose, namely to clarify the relationship between financial flows, financial results and changes in financial position.