Accounting 9706 · AS & A Level · Budgeting and budgetary control
Budgeting and budgetary control — practice question
Stanley has been trading as a sole trader for a number of years, and his year end falls on 31 December. He is putting together a cash budget and supplies information for the three-month stretch from July 2019 through September 2019.
(a)[6]
Explain three advantages of drawing up a cash budget.
(b)[14]
Prepare the cash budget for each of the three months starting on 1 July 2019.
(c)[5]
Discuss how the net present value (NPV) method may provide Stanley with a more accurate evaluation than the payback method.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Supports cash flow planning and control” …