Question

(Appendix) depreciation is excluded from the cash budget.
A)True
B)False

Answer 1

Depreciation is excluded from the cash budget.

Step-by-step explanation:

The statement that depreciation is excluded from the cash budget is false.

Depreciation is a non-cash expense that represents the gradual wear and tear or obsolescence of an asset over time. While it is included in the income statement for accounting purposes, it doesn't affect the cash flow of a company. Therefore, it is excluded from the cash budget, which focuses solely on cash inflows and outflows.