In cash budgeting, the impact of amortization is reflected in the level of cash outflow represented by the tax payments.

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Amortization is a non-cash expense, meaning it does not require an immediate cash outflow. However, it does affect the level of cash outflow represented by tax payments. This is because amortization reduces the taxable income, which in turn reduces the amount of taxes owed. As a result, the cash outflow for tax payments is lower than it would be if amortization were not considered.

In Cash Budgeting, the Impact of Amortization Is Reflected in the Level