As for the preparation of cash budgets,capital expenditures are:

Question

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Capital expenditures are included as uses of cash in cash budgets because they represent cash outflows. This can make the budget lumpy, meaning that certain months or periods may have a substantially higher cash outflow than others. However, it is important to include capital expenditures in order to accurately forecast cash needs and ensure that there is enough funding available to cover these expenses when they arise.

As for the Preparation of Cash Budgets,capital Expenditures Are