Which of the following will not appear in a cash budget? a.Wages b.Machinery bought on hire purchase OC. Depreciation of machinery d.Sales revenue
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![### Quiz Question: Cash Budget
**Question:**
Which of the following will not appear in a cash budget?
**Options:**
a. Wages
b. Machinery bought on hire purchase
c. Depreciation of machinery
d. Sales revenue
**Explanation:**
In the context of a cash budget, only the actual cash transactions are considered. This includes cash inflows and outflows, such as wages (a) and sales revenue (d). However, non-cash items such as depreciation of machinery (c) will not appear in a cash budget. Hire purchase of machinery (b) involves partial payments over time, affecting the cash budget during each payment period, but the depreciation itself is not a cash transaction.
**Correct Answer:**
c. Depreciation of machinery](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0cb4761-340c-473e-92ea-78490f2ad9af%2Ff86ffa96-b1e7-4c39-abf3-87251533c3cd%2F3ttc3og_processed.jpeg&w=3840&q=75)
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