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jeffreys
Jun 22, 2012, 12:06 AM
What are the main differences between a cash budget and a budgeted profit and loss account

pready
Jun 22, 2012, 10:05 AM
Cash budget is based on when you are getting cash in and paying cash out.

Profit and Loss account is is otherwise known as Net Income and is used for Revenues and Expenses.

Revenues will include credit sales, which you may or not receive cash in the same accounting period. Expenses include non cash items like depreciation that does not show up on a cash budget.