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Understanding Cash Budgets. A cash budget is used to estimate the cash inflows and cash outflows anticipated by a company over a period of time. Budgets are often looked at over a 1-month, 3-month or 12-month time period.
Meaning of budget: A budget is a detail plan of operations for a specific period of time. (e) It relates to a future period and is based on objectives to be attained. The essential of budgetary control: (vi) Establishment of budgets. (viii) Continuous comparison of actual performance with standard performance.