CIMA BA2 · Chapter 6 · Question 13 of 13
Which of the following items would NOT appear in a cash budget?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Depreciation of non-current assets
Explanation
A cash budget records only cash inflows and outflows. Depreciation is a non-cash accounting charge that spreads the cost of an asset over its life, so it is excluded. The asset disposal proceeds, dividend payment and loan receipt are all cash flows.
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