Which item would appear as a cash disbursement in a cash budget but NOT reduce net income in the same period?

Which item would appear as a cash

Multiple choice — select the best answer

APurchase of equipment for cash
BDepreciation expense
CCost of goods sold
DAccrued wages expense

✓ Correct answer: A. Purchase of equipment for cash A capital asset purchase is a cash outflow but is expensed over time via depreciation, so it hits the cash budget immediately without an equal current-period expense.

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Topic: Planning & Budgeting

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Which item would appear as a cash disbursement in a cash budget but NOT reduce net income in the same period?

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