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The Operating Budget flows into the Cash budget Collections budget

The Operating Budget flows into the

Cash budget

Collections budget

Business   Accounting   
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Answer #1

An operating budget is a forecast of the revenues and expenses expected for one or more future periods. This budget may be supported by a number of subsidiary schedules that contain information at a more detailed level. For example, there may be separate supporting budgets that address payroll, the cost of goods sold, and inventory.

In short, The result of operating budget depicts the cash flows that will flow in to the company after certain period,So, the Operating budget flows in to the Cash Budget.

In Cash Budget,It depicts the Liquid cash that will be available in future period.

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