Cash budget is the budget which is prepared under the finance budget. It is an estimation of the expected cash receipts and cash payments during the budget period. By preparing cash budget it becomes possible for the organisation to predict whether at any point of time there will be excess or shortage of cash. Two main points should be remembered before preparing cash budget: Time period of the cash budget and the items to be included in the cash budget.
Raj left for his office in a car. He drove 15 km towards North and then 10 km towards West. He then turned to the South and covered 5 km. Further he turned to the East and moved 8 km. Finally he turned right and drove 10 km. In which direction is he from his starting point?
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