Which of the Following Budgets Must Be Completed Before a Cash

question 152

Multiple Choice

Which of the following budgets must be completed before a cash budget can be prepared?

• A) Capital expenditures budget.
• B) Sales budget.
• C) Merchandise purchases budget.
• D) General and administrative expense budget.
• E) All of these.

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Definitions:

Depreciation Expense

Depreciation expense is the allocated reduction of the cost of a tangible fixed asset over its useful life, reflecting its wear and tear, or obsolescence.

Net Loss

The amount by which a company's expenses exceed its revenue over a specific period, indicating negative profitability.

Supplies on Hand

The value of supplies that have not yet been used by the company, classified as a current asset on the balance sheet.

Depreciation Expense

Depreciation expense is the allocated amount of the cost of an asset that is charged as an expense over its useful life.