which of the following items typically found on the selling and administrative expense budget will also impact the cash budget? a. depreciation expense. b. administrative salaries. c. both administrative salaries and advertising expense are correct. d. advertising expense.

Question

16-12-2022
Business

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which of the following items typically found on the selling and administrative expense budget will also impact the cash budget? a. depreciation expense. b. administrative salaries. c. both administrative salaries and advertising expense are correct. d. advertising expense.

Answer :

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hbsinghvt hbsinghvt · Answer 1 · 2022-12-21T01:53:09-05:00

The items typically found on the selling and administrative expense budget will also impact the cash budget is depreciation expense. Therefore, option A is correct.

What is cash budget ?

An estimate of the inflows and outflows of cash over a given time period is known as a cash budget. Cash budgets are advantageous because they may be created for both long- and short-term objectives, sometimes even for just one week.

A financial budget is crucial, particularly for smaller businesses. It enables a business to decide how much credit it can provide to clients without experiencing liquidity issues. A cash budget assists in preventing a cash crunch during times when a business faces a large volume of expenses.

Thus, option A is correct.

To learn more about the cash budget, follow the link;

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