Dividend Payable
Postal Expenditure
Issue of Capital
Total Sales Figure
Answer is Right!
Answer is Wrong!
The correct answer is: C. Issue of Capital
A cash budget is a financial statement that projects a company’s future cash inflows and outflows. It is used to help the company manage its cash flow and avoid running out of money.
The following are the items that are included in a cash budget:
- Cash receipts: This includes all of the money that the company expects to receive in the future, such as from sales, collections from customers, and interest income.
- Cash disbursements: This includes all of the money that the company expects to pay out in the future, such as for expenses, debt repayment, and dividends.
- Beginning cash balance: This is the amount of cash that the company has on hand at the beginning of the period.
- Ending cash balance: This is the amount of cash that the company expects to have on hand at the end of the period.
The issue of capital is not included in a cash budget because it is not a cash flow item. When a company issues capital, it is not receiving or paying out any cash. Instead, it is exchanging one asset (cash) for another asset (equity).
The other options, A, B, and D, are all cash flow items and are therefore included in a cash budget.