Which of the following items should a company report directly in its monthly cash budget?
A) Its monthly depreciation expense.
B) Cash proceeds from selling one of its divisions.
C) Accrued interest on zero coupon bonds that it issued.
D) New shares issued in a stock split.
E) New shares issued in a stock dividend.

Question

Quizplus · Accepted Answer

Cash proceeds from selling one of its divisions directly impact the cash balance and should be reported in the monthly cash budget. The other items (depreciation expense, accrued interest, new shares issued) do not directly affect cash and should not be included in the monthly cash budget.

Which of the Following Items Should a Company Report Directly