This module powered by Virtual Advisor and sponsored by the nonprofit organization SCORE consists of an audio-enhanced PowerPoint presentation focusing on preparation of a cash budget. A worksheet can be downloaded and completed by the user. A link to glossary of relevant terms is provided.
The learning goals are to:
Understand the approaches to a cash budget and time frames associated with a cash budget.
Understand the sources of cash (inflows) and uses of cash (outflows) for a business.
Understand what is meant by a reserve and how to estimate a reserve amount.
Understand how to prepare a cash budget for a business.
Target Student Population:
Professionals and small business owners; possibly undergraduate students enrolled in a managerial accounting course.
Prerequisite Knowledge or Skills:
Basic business fundamentals
Type of Material:
Presentation; Workshop and Training Material
This module is intended for professionals and small business owners. It can be helpful when assigned as a lecture over the basic concepts of cash budgeting. A downloadable worksheet can be completed as homework.
Video viewing capability
Evaluation and Observation
The material presented is valid. The module is clear and concise, as well as current and relevant. The flow of information is logical with concepts summarized nicely. The example illustrating the steps necessary to prepare a cash budget is excellent. The material concludes with a worksheet that allows the user to practice the skills learned. The module also contains a link to glossary of terms.
Wording used in the introduction may be perceived as implying that the income statement can be prepared on a cash or accrual basis, which would be incorrect. More information could be provided on collecting information about receipts and disbursements, e.g. determining how much cash would be collected from accounts receivable and paid for accounts payable given that customers don’t pay 100% in one month or that business entities don’t pay for 100% of their purchases per month.
Potential Effectiveness as a Teaching Tool
The module identifies learning objectives and presents content in an efficient manner, such that users have the potential to learn concepts in a short time. This material provides an excellent demonstration of the steps involved in preparing a cash budget. It explains the potential sources and uses of cash for a small business and explains the need for a reserve. The worksheet can be used as a template for additional assignments.
The module is somewhat difficient in terms of including enough material on specific cash inflows and outflows as well as demonstrating relationships between the questions posed and the cash budget prepared.
Ease of Use for Both Students and Faculty
The presentation is very professionally designed and delivered. The presentation is easily navigated. At the end of each section the arrow returns to the top of the screen to indicate the user needs to advance to the next section. The worksheet provides an opportunity for engaging the learner.
The analysis of the cash balance lacks visual appeal. Additional audio and visual examples would be beneficial. Users cannot rewind and review segments of the presentation within each section.
Other Issues and Comments:
Overall, the module is excellent. Users should be aware that some of the words used in the glossary are not discussed in the module itself. As a result it might be beneficial for users to review the glossary at the beginning of the module to make sure they have sufficient understanding of these items before beginning the module.