CIMAPRA17-BA2-1 Exam - Topic 4 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 86
Topic #: 4

Which of the following is a valid definition of a cash budget?

AA detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.

BA detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

CA detailed budget of estimated cash inflows and outflows incorporating revenue items only.

DA detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

Show Suggested Answer

Suggested Answer: C

https://www.acowtancy.com/textbook/acca-ma/d2-budget-preparation/cash-budgets/notes

by Maryrose at Nov 12, 2024, 10:39 PM

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Ryan

6 months ago

A is the only one that makes sense here!

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Paola

6 months ago

Wait, depreciation in a cash budget? That sounds off.

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Asuncion

6 months ago

I thought it was just about inflows?

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Karol

7 months ago

Definitely A! It covers all the bases.

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William

7 months ago

A cash budget includes both inflows and outflows.

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Shawnda

7 months ago

I definitely recall that a cash budget includes outflows, but I can't remember if it should only focus on revenue or include capital as well.

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Verona

7 months ago

I feel like I might be mixing up cash inflows with just revenue items. Wasn't there a question similar to this in our last mock exam?

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Kayleigh

8 months ago

I think option A sounds right because it mentions both revenue and capital items, which is what we practiced in class.

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Art

8 months ago

I remember that a cash budget should include both inflows and outflows, but I'm not sure if it covers capital items too.

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Herminia

8 months ago

I'm a bit confused by the wording of these options. I'll need to think through the key characteristics of a cash budget to determine the best definition.

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Annmarie

8 months ago

Okay, I've got this. A cash budget should include both cash inflows and outflows, not just one or the other. I think option A is the correct answer here.

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Lajuana

8 months ago

Hmm, this is a tricky one. I'm not entirely sure about the differences between the options. I might need to review my notes on cash budgets before attempting this.

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Yen

8 months ago

This looks like a straightforward definition question. I'll read through the options carefully and try to identify the one that best matches the description of a cash budget.

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Yvonne

2 years ago

I'm not sure, but I think it's either A or B. Both seem to make sense.

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Micaela

2 years ago

I agree with Mozell, because a cash budget should include both revenue and capital items.

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Elly

2 years ago

Wait, are we supposed to include depreciation in a cash budget? That's a non-cash expense. Option A is the clear winner here.

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Mozell

2 years ago

I think the answer is A.

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Ricki

2 years ago

Haha, option D is basically just a cash flow statement, not a budget! Nice try, but I'm going with A.

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Dalene

1 year ago

Yeah, option A seems to be the most comprehensive definition.

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Jose

1 year ago

I think option A is the correct definition of a cash budget.

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Jesusa

2 years ago

I agree, option D is more like a cash flow statement.

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Kanisha

2 years ago

I think option C is too narrow. A cash budget needs to account for both revenue and capital items to be truly useful.

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Sharita

2 years ago

A cash budget should definitely include both inflows and outflows, not just one or the other. Option A seems like the most comprehensive definition to me.

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