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Which of the following is a valid definition of a cash budget?
Suggested Answer: C
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27 comments · newest first
RY
Ryan
11 months ago
A is the only one that makes sense here!
PA
Paola
11 months ago
Wait, depreciation in a cash budget? That sounds off.
AS
Asuncion
11 months ago
I thought it was just about inflows?
KA
Karol
12 months ago
Definitely A! It covers all the bases.
WI
William
12 months ago
A cash budget includes both inflows and outflows.
SH
Shawnda
12 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.
VE
Verona
1 year 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?
KA
Kayleigh
1 year ago
I think option A sounds right because it mentions both revenue and capital items, which is what we practiced in class.
AR
Art
1 year ago
I remember that a cash budget should include both inflows and outflows, but I'm not sure if it covers capital items too.
HE
Herminia
1 year 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.
AN
Annmarie
1 year 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.
LA
Lajuana
1 year 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.
YE
Yen
1 year 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.
YV
Yvonne
2 years ago
I'm not sure, but I think it's either A or B. Both seem to make sense.
MI
Micaela
2 years ago
I agree with Mozell, because a cash budget should include both revenue and capital items.
EL
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.
MO
Mozell
2 years ago
I think the answer is A.
RI
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.
DA
Dalene
2 years ago
Yeah, option A seems to be the most comprehensive definition.
JO
Jose
2 years ago
I think option A is the correct definition of a cash budget.
JE
Jesusa
2 years ago
I agree, option D is more like a cash flow statement.
KA
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.
SH
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.
ON
Onita
2 years ago
Option D seems to be too limited, as it only includes estimated cash outflows and not inflows.
KI
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.
SK
Skye
2 years ago
Option A is the most comprehensive definition, as it incorporates both revenue and capital items.
CA
Carlton
2 years ago
I agree, a cash budget should definitely include both inflows and outflows.