A cash budget includes estimated cash:

Question

Quizplus · Accepted Answer

A cash budget is an estimation of a company's cash inflows and outflows over a specific period. The budget includes the estimated cash receipts and the estimated cash disbursements. Option A includes accounts receivable and accounts payable balances, which pertain to accrual accounting, not cash accounting. Option B includes interest payments but not tax payments, which are significant cash outflows for most companies. Option D includes non-cash expenses, which are not relevant for a cash budget.

A Cash Budget Includes Estimated Cash