Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?
A) Payments lags.
B) Payment for plant construction.
C) Cumulative cash.
D) Repurchases of common stock.
E) Writing off bad debts.

Question

Quizplus · Accepted Answer

Writing off bad debts is an accounting entry that affects the income statement and balance sheet, but it does not directly impact the cash budget as it does not involve an actual cash transaction.

Which of the Following Is NOT Directly Reflected in the Cash