Which One of the Following Items Would Never Appear on a Cash

question 143

Multiple Choice

Which one of the following items would never appear on a cash budget?

• A) Office salaries expense
• B) Interest expense
• C) Depreciation expense
• D) Travel expense

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Definitions:

Contribution Margin Ratio

The proportion of revenue from each dollar of sales that goes towards covering fixed expenses and creating profit.

Unit Sales

Unit sales measure the total number of individual items or products sold over a particular period.

Target Profit

The desired net income a company aims to achieve for a specific period.

Break-even

The point at which total costs and total revenues are equal, meaning that there is no net loss or gain.