Cash Budgeting as a Basis for Making a Decision

Cash Budgeting as a Basis for Making a Decision

Project / Seminar Material
Reference ID: PS-12262-TM

DEDICATION

This research material titled “Cash Budgeting as a Basis for Making a Decision” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Banking and Finance (BF), Book Authors and Profound Scholars of existing or related project material on “Cash Budgeting as a Basis for Making a Decision” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    The research project was on Cash Budgeting as a Basis for Making a Decision. The whole work has been divided into five chapter.

    Chapter one: Introduction of the project. Chapter two talks on literature review, Chapter three, takes eared of the methodology, Chapter four is about findings and chapter five is about conclusion and recommendation.

    In carrying out this project, the research based only on the secondary sources of data collection.

    In case of secondary approach she (researcher) utilized library research (text books) journals and unpublished lectures. The researcher found out that some projects were stated and abandoned half way while some other establishments adhere strictly to their cash budgets.

    In her conclusion, the researcher said that cash budgeting was an impact management toll both in publish and private sectors.

    Finally, she (researcher) recommended that orientation programme should be organized for new staff, that modern accounting equipments should be bought and put in use, that monthly cash budget should be introduced to take care fluctuations in the economy and that management should install effective financial rewards as motivation towards meeting the organization’s budget objectives.

    Cash Budgeting as a Basis for Making a Decision

    CHAPTER ONE

    Introduction

    1.1 Background Study

    Cash is represented by those monetary items immediately available to management for business purposes. Cash includes commercial and savings deposits in banks and else where, available on demand and money items on hand that can be used as a medium of exchange or that are acceptable for deposit at face value by a bank. Cash is involved in most business transactions. This is due to the nature of business transactions, which include a price and conditions calling for settlement in terms of medium of exchange.

    For instance, the movement of cash completes almost all purchases and sales transactions. Purchases of goods and services normally result in cash payments while sales normally in cash receipts.

    “Business and individuals have these primary motives for holding cash and these are the transactions motive, the precautionary motive and the speculative motive”.

    1. The transactions motives enables firms and companies to conduct their ordinary business making purchase and sales.
    2. The precautionary motives depends on the predictability of cash flow and the ability of the company to borrow on short notice. This motive enables a firm to provide enough find as a protection against unexpected demand.
    3. The speculative motive enables the organization to take advantage of such unexpected opportunities as may arise.

    Moreover, sound making working capital management requires the maintance of adequate amount of cash for certain specific reason.

    1. Sufficient cash per nuts taking trade discount.
    2. Adequate liquid assets are required to strengthen the current and acid test ratio which are key items in the appraisal of a firm’s credit worthiness.
    3. To take advantage of profitable business opportunities as cash is a major requirement.
    4. Adequate cash is necessary to provide a firm with sufficient liquidity to meet various emergencies.

    It is disadvantageous to hold no cash. The costs appear less obvious and rather more difficult to quantities these include the inability of the firm to meet bills as they fall due, the opportunity cost of being unable to take any unexpected opportunities (like buying some cheap stock for cash) and cost associated with having to borrow cash at expensive short-term rates in order to satisfy unexpected urgent demand.

    Whatever the cost, it is the responsibility of management to balance these costs with each other so as to ascertain and maintain that optional level of cash to be the use of such budgeting is one method of attaining this level.

    This (cash budgeting) is usually done only a year in advance or on a monthly basis. The cash inflows and outflow estimated for cash period are identified and the likely cash balance projected from them. Steps cash then be taken at an early stage in the planning process to illustration.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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