ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following items would never appear on a cash budget?
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Office salaries expense
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Interest expense
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Depreciation expense
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Travel expense
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Explanation:
Detailed explanation-1: -Depreciation expense cannot be obtained from the cash budget, since it does not constitute a cash flow.
Detailed explanation-2: -What Expenses Should Be Included in a Cash Budget? A cash budget should take into account expected cash flows, such as revenue, as well as operational outflows due to returns, payroll, rent, utilities, supplies, and other costs of running the business.
There is 1 question to complete.