Which of the following transactions will affect the cash budget for a particular month in which each transaction occurs?

Question

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Payment for direct labor will affect the cash budget for the particular month in which it occurs as it involves the outflow of cash. The sale of a product when payment will be received in 60 days will not affect the cash budget in the month of the sale but will affect it in the month of receiving the payment. Amortization of prepaid insurance and depreciation of a piece of equipment will not involve any cash outflow in the particular month, hence will not affect the cash budget.

Which of the Following Transactions Will Affect the Cash Budget