On March 10ᵗʰ, a business owner receives an invoice from a supplier for $416.27 with "Net 30" credit terms marked on it. On April 7ᵗʰ, the owner writes the supplier a check for $416.27 and mails it. When would this cash disbursement show up on the company's cash budget?

Question

Quizplus · Accepted Answer

The cash disbursement would show up on the company's cash budget on April 7ᵗʰ, the date the check is written and mailed, as this is when the payment is made.

On March 10ᵗʰ, a Business Owner Receives an Invoice from a Supplier