Which of the following items would most likely differ on the cash budget and the budgeted income statement?
A)Insurance expense
B)Advertising expense
C)Bad debt expense
D)Supplies expense

Question

Quizplus · Accepted Answer

Bad debt expense is recognized in the budgeted income statement as it is an estimate of future uncollectible accounts, affecting net income. However, it does not involve an actual cash outflow until the debt is written off, so it typically does not appear on the cash budget, which focuses on cash inflows and outflows.

Which of the Following Items Would Most Likely Differ on the Cash