1. How do profit and loss statements cash flow (using the direct and indirect methods), and aging summaries contribute to new budgets?

2. How can you ensure that managers and supervisors in the organisation understand the budget and understand their reporting requirements with regard to financial

management?

3. Budgets are used to identify and track discrepancies between agreed and actual

allocations. Explain.

4. How do budgets contribute to analysis of existing financial management approaches?