All 34 Cash Budgeting questions
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Budgeting & Forecasting › Cash Budgeting

How do you treat capital receipts (asset sales, share issues) in the cash budget?

Intermediate

Answer

Capital receipts—proceeds from selling assets, issuing shares, or drawing loans—are cash inflows recorded in the month received. They're distinguished from operating receipts because they're one-off/financing in nature, but for the cash balance they add to available cash just the same.
Real-world example Proceeds from selling an old machine appear as a one-off inflow in the month of sale.

Common follow-ups: How do capital receipts differ from operating ones? | When are they recorded?

Capital Budgeting The Master Budget Cash Budgeting
All 34 Cash Budgeting questions