The cash budget is not the same as the pro forma cash flow statement.

Question

Quizplus · Accepted Answer

The cash budget is a detailed estimate of cash inflows and outflows for a specific period, while the pro forma cash flow statement is a summary of the expected cash flows for a period, usually prepared in conjunction with a financial forecast. While both provide insight into the expected cash position of a company, they differ in their level of detail and purpose.

The Cash Budget Is Not the Same as the Pro