Explanation The depreciation and bad debts are non-cash expenses. So it is to be incorporated in cash budget while from the operating income it is to be deducted. The advertising expense cannot be noncash expense so option b & option d is not the right option. The rent expense cannot be a noncash expense so option c & option d is not the right option. a. Depreciation Expenses and Bad debts expense: This is the correct option because depreciation expenses and bad debt are treated as an expense and therefore it is deducted from income. But it’s a non-cash expense so it is important to make provision for these expenses in the income statement, and it adds back to the cash budget...

5th Edition

ISBN: 9780134128528

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Question

Chapter 9, Problem 6QC

To determine

To identify: The non-cash expense which will result in the difference of operating budget and cash budget.

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Chapter 9, Problem 5QC

Chapter 9, Problem 7QC

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Chapter 9 Solutions

Managerial Accounting (5th Edition)

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

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The non-cash expense which will result in the difference of operating budget and cash budget .

Solution Summary: The author explains that depreciation expenses and bad debts are non-cash expenses that are incorporated in cash budget while from operating income it is deducted.

To identify: The non-cash expense which will result in the difference of operating budget and cash budget.

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Chapter 9 Solutions