cash-flow budget

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A budget that summarizes the expected cash inflows and the expected cash outflows of an organization over a budget period, usually prepared on a monthly basis. It is the result of the analysis in cash-flow terms of the functional budgets and the capital budget, adjusted by other cash-flow items, such as interest, tax, and dividend payments. It is used as a planning aid to determine when cash surpluses are likely to be available for investment or when cash deficits are likely to arise requiring additional finance.

Subjects: Accounting.

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