Asked by Rebecca Groen on Jul 23, 2024
Verified
For cash budgeting purposes, wages are generally considered as paid in the quarter incurred
Cash Budgeting
Cash Budgeting involves forecasting and tracking cash inflows and outflows to ensure a business has sufficient liquidity to meet its obligations at all times.
Wages
Wages are the monetary compensation paid by an employer to an employee in exchange for work performed, typically calculated on an hourly, daily, or piecework basis.
- Master the idea and pivotal role of cash budgeting in planning financial activities.
- Acquire knowledge on the approach towards taxes, employee compensation, capital equipment, and inventory procurement in cash budgeting processes.
Verified Answer
SM
Sofia MedinaJul 26, 2024
Final Answer :
True
Explanation :
Wages are typically considered as paid in the quarter they are incurred because they are a type of expense that is usually paid in the same period in which the work is performed, aligning with cash budgeting practices that match cash outflows with the periods in which they occur.
Learning Objectives
- Master the idea and pivotal role of cash budgeting in planning financial activities.
- Acquire knowledge on the approach towards taxes, employee compensation, capital equipment, and inventory procurement in cash budgeting processes.
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