- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cash Budgeting
hell sir,
please can you explain to me how a business manages surpluses and deficits predicted in cash
budgets.
thank you.
Given the nature of the exam, this is unlikely to be asked in Paper MA, and is much more likely in Paper FM (and is of course therefore discussed in the Paper FM lectures).
If tt is a short-term surplus then they will look for short-term investments such as a deposit account.
If it is a long-term surplus then they they consider investment in more assets or consider paying a higher dividend to the shareholders.
If it is a short-term deficit then they will look to see if they can get debtors to pay sooner, or will make arrangements for an overdraft from the bank, or defer buying new assets or paying a dividend.
If it is a long-term deficit then they will see if they can cut costs or arrange raising long-term finance.