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

Which of the following is a valid definition of a cash budget?
C) A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
A) A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
B) A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
D) A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

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

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 86
Topic #: 4
[All CIMAPRA17-BA2-1 Questions]

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

Show Suggested Answer Hide 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
9 months ago
A is the only one that makes sense here!
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Paola
10 months ago
Wait, depreciation in a cash budget? That sounds off.
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Asuncion
10 months ago
I thought it was just about inflows?
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Karol
10 months ago
Definitely A! It covers all the bases.
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William
10 months ago
A cash budget includes both inflows and outflows.
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Shawnda
10 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
2 years ago
Yeah, option A seems to be the most comprehensive definition.
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Jose
2 years 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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Onita
2 years ago
Option D seems to be too limited, as it only includes estimated cash outflows and not inflows.
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Kirby
2 years ago
I think Option B is more focused on just cash inflows, which may not give a complete picture of the financial situation.
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Skye
2 years ago
Option A is the most comprehensive definition, as it incorporates both revenue and capital items.
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Carlton
2 years ago
I agree, a cash budget should definitely include both inflows and outflows.
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