Question

Distinguish between a cash budget and a cash flow statement.

Answer 1

1. A cash flow statement is different from a cash budget. A cash flow statement shows the cash inflows and outflows which have already taken place during a past time period.
2. On the other hand, a cash budget shows cash inflows and outflows which are expected to take place during a future time period. In other words, a cash budget is a projected cash flow statement.