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Business
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| Number of pages / Number of words: |
6 / 1488 |
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These assumptions represent the foundation on which the action plans for the budget period are built.
A number of assumptions about the timing of cash receipts and disbursements must be made when the cash budget is prepared. Once the assumptions about the timing of cash receipts and disbursements have been made, the preparation of the cash budget is a straightforward mechanical process...
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al, 2004).
Assumptions are necessary to create a capital budget and are based on previous empirical data with the hope of predicting future events (growth, expenditures, sales, profit, earnings etc.). The more detailed the assumptions, the more likely they are to provide an accurate portrayal of future events...
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