A comprehensive financial or quantitative statement prepared prior to a specified accounting period, containing the plans and policies to be pursued during that period.
A cash-flow budget is a tool that summarizes expected cash inflows and outflows of an organization over a budget period, usually prepared monthly. It serves as a planning aid to determine cash availability for investment or to identify cash deficits requiring additional finance.
A financial budget is an organizational tool that outlines an entity's monthly, quarterly, or annual financial goals and expectations, aiding in financial planning, forecasting, and control.
The master budget is the final coordinated overall budget for an organization, which includes functional budgets, the capital budget, the cash-flow budget, and the budgeted profit and loss account and balance sheet for a specific period.
A zero-base budget (ZBB) is a cash-flow budget where the manager responsible must prepare and justify all expenditures from a zero base, assuming no prior spending commitments. This method compels a thorough review of each cost element, contrasting sharply with the incremental budget, which adjusts previous budgets.
