In the cash budget,examples of cash disbursements do NOT include:
A)purchase of inventory with cash.
B)payment of operating expenses.
C)payment of dividend.
D)depreciation expense.

Question

Quizplus · Accepted Answer

Cash disbursements include payments that reduce cash balances such as purchasing inventory, paying operating expenses, and paying dividends. Depreciation expense is a non-cash expense and does not affect the company's cash balance. Therefore, option D is not an example of cash disbursements.

In the Cash Budget,examples of Cash Disbursements Do NOT Include