What is cash forecast and what are the golden rules of accounting?

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Accepted Answer

Cash forecast is a projection of future cash inflows and outflows. Golden rules of accounting are basic principles to maintain accurate financial records.

Cash forecast helps in managing cash flow and planning for future expenses.
Golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; and debit expenses and losses, credit income and gains.
These rules ensure accuracy and consistency in financial records.
For example, if a company receives cash from a customer, it should be debited to the cash account and credited to the accounts receivable account.
Similarly, if a company pays for rent, it should be debited to the rent expense account and credited to the cash account.

What is cash forecast and what are the golden rules of accounting?

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