Asked by Gabby Thomas on Jul 02, 2024
Verified
Which of the following would not be used in preparing a cash budget for October?
A) Beginning cash balance on October 1.
B) Budgeted sales and collections for October.
C) Estimated depreciation expense for October.
D) Budgeted salaries expense for October.
E) Budgeted capital equipment purchases for October.
Beginning Cash Balance
The amount of cash available at the start of a given period, often used as a reference point for cash flow analysis.
Depreciation Expense
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value as the asset is used.
Capital Equipment Purchases
Capital equipment purchases involve the acquisition of physical assets like machinery, vehicles, or equipment used in the production process or in the administration of a business.
- Comprehend the process of preparing cash budgets and maintaining minimal cash reserves.
Verified Answer
YM
Yatish Malik6 days ago
Final Answer :
C
Explanation :
Depreciation expense does not affect cash flows and would not be included in a cash budget. The other options all involve cash inflows or outflows that would impact the cash balance.
Learning Objectives
- Comprehend the process of preparing cash budgets and maintaining minimal cash reserves.