A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided:
-When preparing the cash budget, all the following should be considered except
A)cash receipts from customers
B)depreciation expense
C)cash payments to suppliers
D)cash payments for equipment

Question

A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided:  ​
-When preparing the cash budget, all the following should be considered except
A)cash receipts from customers 
B)depreciation expense 
C)cash payments to suppliers 
D)cash payments for equipment

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge and does not affect the cash budget. It is an accounting entry that reduces the value of assets gradually over time, but no actual cash is spent or received.

A Company Is Preparing Its Cash Budget