The Cash Budget Only Includes Items That Also Appear on the Income

question 66

True/False

The cash budget only includes items that also appear on the income statement, although the timing may be different.

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Definitions:

Saving

The portion of income that is not spent on consumption but is kept aside for future use, investments, or emergencies.

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

Consumption Spending

The total money spent by households in an economy on goods and services.