When preparing the cash budget,all of the following should be considered except:
A)Cash receipts from customers.
B)Cash payments for merchandise.
C)Depreciation expense.
D)Cash payments for income taxes.
E)Cash payments for capital expenditures.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and does not directly impact the firm's cash balance. The other options (A, B, D, and E) directly impact the cash inflows and outflows of the company and should be considered when preparing the cash budget.

When Preparing the Cash Budget,all of the Following Should Be