Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period. To state: The reason for making an adjustment for depreciation expense while preparing the cash budget .

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Answer 1

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Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

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Students have asked these similar questions

2. Should depreciation expense be explicitlyincluded in the cash budget? Why or why not?

In construction of a cash budget, depreciation is not used. However, it is used to compute cash flows for a capital budget. Explain the difference.

What is temporary cash surplus and what should be done with it?

Answer 2

Question

Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

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Answer 3

Question

Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

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Answer 4

Question

Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

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Answer 5

Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

Answer 6

Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

Answer 7

Chapter 8, Problem 17Q

To determine

Introduction:

Budgeting is an important part of the business process. Without budgeting, a business cannot track its process and improve its performance. A budget helps in evaluating the income and expenditure for a period.

To state:

The reason for making an adjustment for depreciation expense while preparing the cash budget.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 8 - Briefly describe why budgetary planning is...Ch. 8 - What role do budgets play in the planning and...Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - What are the advantages and disadvantages of...Ch. 8 - What is budgetary slack and why might it be...Ch. 8 - Briefly explain how each of the following helps to...Ch. 8 - What is the master budget, and what are its...

Solution Summary: The author explains that budgeting is an important part of the business process. Depreciation is a non-cash expense that doesn't directly affect the cash flows position of companies.

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