The cash collections section of a cash budget includes the beginning cash balance and the expected cash receipts, which are vital for liquidity management.
The section of the cash budget that consists of the beginning cash balance and the expected cash receipts is called the cash collections section. This portion reflects the initial amount of cash available at the start of the period and the cash expected to be received from various sources such as sales, interest, dividends, or other revenue streams. The cash budget is crucial for managing liquidity and ensuring that the business has enough cash to meet its obligations.