BUS 2204 Personal Finance
Learning Journal Unit 4
University of the People
16th July, 2020
A budget that helps project a specific aspect of a financial activity is referred to as a Cash
Flow Budget, it is used as a cash management tool, and it provides more detailed information
about the timing and amounts of cash flows, it gives a clear view of risk and opportunities,
(Siegal, R. & Yacht, C. 2009).
This budget is a useful alternative to a comprehensive budget. The comprehensive budget is
complicated for immediate access, but the cash flow budget provides information that is
detailed about the dates and amounts of cash flows in the organization. With a cash flow
budget, risk and opportunities are identified quickly than when determining risk and
opportunities from a comprehensive budget. The comprehensive budget addresses all aspects
of financial activities; a projection of recurring income and expenses, and nonrecurring
expenditures. Meanwhile, a cash flow budget is a useful alternative to a comprehensive
budget, especially in at a time that one want to determine the amount of money required
within a specific period of time (Siegal, R. & Yacht, C. 2009).
Siegal, R. & Yacht, C. (2009) adds again that, a cash flow budget provides detailed
information about one’s cash inflow and outflow within a specific period of time; it could be
a month, quarter of a year, or even a whole year, and in a case, an individual wants to
determine their cash inflow and outflow for a specific period, cash flow budget will play a
very significant role.
Although, detailed information can also found in a comprehensive budget, finding the needed
information is time consuming, that is, a lot of time spent to locate a specialized budget. The
cash flow budget forms part of a comprehensive budget but if emphasis is placed on a
specific cash inflow or outflow period; then the cash flow budget can be trusted as an
alternative to a comprehensive budget (Siegal, R. & Yacht, C. 2009).
Reference:
Siegal, R. & Yacht, C. (2009). Personal Finance. Saylor Foundation. Licensed under Creative
Commons CC BY-NC-SA 3.0.
Learning Journal Unit 4
University of the People
16th July, 2020
A budget that helps project a specific aspect of a financial activity is referred to as a Cash
Flow Budget, it is used as a cash management tool, and it provides more detailed information
about the timing and amounts of cash flows, it gives a clear view of risk and opportunities,
(Siegal, R. & Yacht, C. 2009).
This budget is a useful alternative to a comprehensive budget. The comprehensive budget is
complicated for immediate access, but the cash flow budget provides information that is
detailed about the dates and amounts of cash flows in the organization. With a cash flow
budget, risk and opportunities are identified quickly than when determining risk and
opportunities from a comprehensive budget. The comprehensive budget addresses all aspects
of financial activities; a projection of recurring income and expenses, and nonrecurring
expenditures. Meanwhile, a cash flow budget is a useful alternative to a comprehensive
budget, especially in at a time that one want to determine the amount of money required
within a specific period of time (Siegal, R. & Yacht, C. 2009).
Siegal, R. & Yacht, C. (2009) adds again that, a cash flow budget provides detailed
information about one’s cash inflow and outflow within a specific period of time; it could be
a month, quarter of a year, or even a whole year, and in a case, an individual wants to
determine their cash inflow and outflow for a specific period, cash flow budget will play a
very significant role.
Although, detailed information can also found in a comprehensive budget, finding the needed
information is time consuming, that is, a lot of time spent to locate a specialized budget. The
cash flow budget forms part of a comprehensive budget but if emphasis is placed on a
specific cash inflow or outflow period; then the cash flow budget can be trusted as an
alternative to a comprehensive budget (Siegal, R. & Yacht, C. 2009).
Reference:
Siegal, R. & Yacht, C. (2009). Personal Finance. Saylor Foundation. Licensed under Creative
Commons CC BY-NC-SA 3.0.
