Question 7

Answer the following:

1. Explain in 120150 words the differences between cash, revenue and expenditure. Provide an example of each category and which budget/s it is relevant to preparing.

2. You have discovered that controls implemented on the printing, postage and stationery account have made significant changes. Each month the savings made are $300. Use the first two columns to complete the worksheet.

Voyager Co. Budget variance worksheet 31.3.2017
Month	Existing Estimate	Change to	Effect on:
			Income	Expenses	Cash Flow
July	700
Aug	750
Sept	800
Oct	900
Nov	950
Dec	800
Jan	800
Feb	800
Mar	800
Apr	800
May	800
June	800
Total	9,700

3. What is the total effect on cash flow? (2050 words)

4. What effect will the control have on the sales budget? (2050 words)

5. What effect will the control have on the financial position? (2050 words)