Which of the following items would most likely differ on the cash budget and the budgeted income statement?
A)Rent expense
B)Research and development expense
C)Sales commissions expense
D)Depreciation expense

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense, meaning it affects the budgeted income statement by reducing taxable income but does not impact the cash budget since it does not involve an actual outflow of cash.

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