CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY:
Every rational economic unit has some objectives to attain, individual, corporate bodies in government have objectives to achieve. To achieve their respective objectives, resources have to be made available, unfortunately nature did not distribute her resources abundantly, whilst objectives and needs are numerous and varied as they are various economic units.
In order to make resources available, cash is needed, according to investopedia, cash is legal tender or corns that can be used to exchange goods, debt or services some time it can also incluces the value of assets that can be converted into cash immediately, as reported y a company.
Acoring to Shine Mat (15 June 2012): companies have those primary motives for holding cash and hey are:
The transaction motive
The precautionary motive
The speculative motive.
The transation motive enables firms and companies to conduct their ordinary business making purchases and sales. The precautionary motive depends on the predict ability of cash flow and the ability of company to borrow a short notice. This motive enable a firm to provide enough funds as a protection against unexpected opportunity that may arise. Moreover, sound working capital management require the maintenance of adequate amount of cash. The organization must plan towards its and this plan is know as budgeting a subset of corporate plan.
1.2 STATEMENT OF PROBLEM
Budget is one of the controlling instruments used by the management, it is a plan or estimate to be attained by an enterprise. In this study, efforts are made ot find solution to the following problems. The problem of why budget cases failed to be realized it is because of insufficient capital. Another problem that management face is their liability ot manage (long term) cash budget and forecast which may take up to two years, this is because of instability in the inflow and outflow of cash. Cash balances my fluctunate considerably within a single accounting period, there by making cash short tall that can put a company in serious jeiopardy. To solve this, it is quite common to create and maintain cash forecasts on a weekly basis. If there may be large or unusually cash balances indicated in the cash budget. these balances are dealt with in the financing budget where suitable investment is indicated for them.
1.3 OBJECTIVE OF THE STUDY:
The main objective of this study is to investigate cash budget as tool for decision making in an organization specifically, the researcher wants to:
i Determine where cash budget is actually a basis for decision making in an organization.
ii Know the impact of conducting continuous cash budget
iii The level of which cash budget has help organizations increasing more wealth and effective management
iv How cash budget allows management to establish the amount of credit that it can extend to customers without beginning to have problem’s with liquidity.
v Know how cash budget help the organization to avoid having a cash shortage during when you have numeral expenses.
vi To know how management manages it inflow and out flow
Can't find what you are looking for?
Call (+234) 07030248044.
OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS
A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses...Continue reading »
A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses...Continue reading »
A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM (A Case Study Of Ama Breweries Plc. Eke, Udi L.G.A And Africa Petroleum Plc Presidential Road)
ABSTRACT This research study is a comparative analysis of computerized accounting system and manual accounting system with reference to Ama breweries plc. and African petroleum plc. all in Enugu state...Continue reading »
A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM (A study of Ama breweries Plc. and Africa petroleum Plc)
ABSTRACT This research study is a comparative analysis of computerized accounting system and manual accounting system with reference to Ama breweries plc. and African petroleum plc. all in Enugu stat...Continue reading »
A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM (A study of Ama breweries Plc. Eke, Udi L.G.A and Africa petroleum Plc Presidential road)
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses to...Continue reading »
A COMPARATIVE ANALYSIS OF EARNING QUALITY BEFORE AND AFTER ADOPTION OF IFRS IN NIGERIA (A CASE STUDY OF MONEY DEPOSIT BANKS ABUJA)
CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY The purpose of International Financial Reporting Standard (IFRS) is to ensure high degree of transparency and comparability of financial statements....Continue reading »
What are looking for today?
Format: | Ms Word | ||
Chapters: | 1 - 5 | ||
Pages: | 70 | ||
Attributes: | Questionnaire, Data Analysis,Abstract | ||
Price: | ₦3000 | ||
Get the complete project » |
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
88,462 people found this useful
IMPACT OF E-LEARNING ON THE ACADEMIC PERFORMANCE OF UNDERGRADUATE STUDENTS (A CASE STUDY OF NATIONAL...
68,651 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
60,790 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
57,348 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
57,292 people found this useful
THE EFFECT OF ADVERTISEMENT ON CONSUMER BRAND PREFERENCE
55,149 people found this useful