Cash Budgeting versus Cash Flow Analysis:
Cash budgeting is distinct from cash flow analysis since cash budgeting is comparison among actual and estimated cash inflow and cash outflow however in cash flow analysis, we make cash flow statement and compare present year cash inflow and outflow with preceding year cash inflow and cash outflow.
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There is nothing to prevent a business generating a comprehensive set of financial statements for the interim period, even though considerations of cost and timeliness will generally make this not practical.
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There is an assumption in accounting that money, that is the unit of measurement, will stay stable over time. However, this is an unrealistic assumption as the value of money changes. Generally, it is inflation that is the culprit.
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