ICAEW BIP · Chapter 7 · Question 5 of 10
Which of the following items would NOT appear in a cash budget?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Depreciation of non-current assets
Explanation
A cash budget includes only cash inflows and outflows. Depreciation is an accounting adjustment that spreads the cost of an asset over its life and involves no cash movement. Sale proceeds, tax payments and loan repayments are all cash flows.
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