Which of the following items should a company report directly in its monthly cash budget?

Question

Quizplus · Accepted Answer

Cash proceeds from selling one of its divisions is a direct cash inflow that should be included in a company's monthly cash budget. Accrued interest on zero coupon bonds (B) is a non-cash transaction and new shares issued in a stock split (C) or stock dividend (D) do not directly impact cash flow. Monthly depreciation expense (E) is a non-cash expense and should be reported on the income statement but not in the cash budget.

Which of the Following Items Should a Company Report Directly