Which of the following will not appear in cash budget Mcq?
Answer and Explanation: The correct answer to the given question is option (a) Depreciation expense.
There are some non-cash expenses that are not contained in cash budgets because they do not entail a cash outlay, for example, bad debts and depreciation. The cash outflow section in cash budgets contain: Planned cash expenditures. Fixed asset purchases.
Answer added by Mohsin Ali Chaudhry, Accounts Officer , CCE - Contracting & Construction Enterprises Ltd. Dividends are included in the budget, if it is considered as cash dividends. Remaining other items are non cash or intengible assts.
Short-term cash budgets will look at items such as utility bills, rent, payroll, payments to suppliers, other operating expenses, and investments. Long-term cash budgets focus on quarterly and annual tax payments, capital expenditure projects, and long-term investments.
The statement which is true about cash budget is that only actual payment and receipts are shown from other operating budget schedule, the cash receipts are scheduled based on cash sales made as well as the credit sales thus predict the cash flows projection of an organization as per the cash budget concept.
A is the answer, maximisation is not an objective of cash management.
Cash budget does not have any linkage with accrual concept.
The profit is considered to be equivalent to cash. The cash receipts and payments are not taken into consideration, only non-cash transactions are considered to prepare the cash budget under this method.
Solution(By Examveda Team) Purchase of fixed asset is NOT a cash inflow. Cash inflow is the money received by an organization as a result of its operating activities, investment activities, and financing activities.
Which of the following is NOT a cash outflow for the firm? depreciation.
Which one of the following events will reduce the cash balance of a business Mcq?
Answer: (C) Selling a long-term investment at a loss for cash. Question 51.
The objectives of cash management are straightforward – maximise liquidity and control cash flows and maximise the value of funds while minimising the cost of funds.
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| Q. | Which of the following is not an advantages of trade credit? |
|---|---|
| B. | flexibility |
| C. | informality |
| D. | buyout financing |
| Answer» d. buyout financing | |
Answer :- Average rate of return method is based on cash flows. 5. Which of the following is not a capital budgeting decision? Inventory control.
Three methods of preparing a cash budget are outlined below: Receipt and payment method. Adjusted profit and loss method. Balance sheet method.
When classifying cash budgets, people commonly divide them into two categories. A short-term cash budget covers a period measured in weeks or months, while a long-term cash budget covers a period of years. A cash budget of one year is occasionally referred to as an intermediate cash budget.
cash sales is not a non-cash item.
Which of the following is an example of cash flow from Operating Activities? (D) Sale of investment by non-fmancial enterprise. 23.
| Q. | Which of the following is not source of cash? |
|---|---|
| B. | purchase of machinery |
| C. | sale of asset |
| D. | dividend received |
| Answer» b. purchase of machinery | |
Answer and Explanation: B) Investing in equipment worth $90,000 is not an example of financing cash flow. Financing refers to cash inflows and outflows that generate capital or pay for the generation of capital which defines the other three options.
Which of the following activities is not included in cash flow statement?
Investing and financing transactions that do not require the use of cash or cash equivalents should be excluded from a cash flow statement. Such transactions should be disclosed elsewhere in the financial statements in a way that provides all the relevant information about these investing and financing activities.
According to the accounting profession, which of the following would be considered a cash-flow item from a "financing" activity? A cash outflow to the government for taxes.
Depreciation expense. Explanation: A cash budget estimates future cash flows for a business for a period of time.
Family living expenses and principal payments on loans should be included on a cash flow budget but never on an income statement. Interest payments are included on a cash flow budget but principal payments are not.
Depreciation is a non-cash expense, as a result, charging of lower depreciation will result in neither increase nor decrease of net cash flow.
Which of the following is generally included in a sales budget? Schedule of cash receipts for the projected sales. Desired ending inventory and budgeted cost of goods sold appear on the inventory purchases budget.
