Which of the following items should a company report directly in its monthly cash budget?
A) Cash proceeds from selling one of its divisions.
B) Accrued interest on zero coupon bonds that it issued.
C) New shares issued in a stock split.
D) New shares issued in a stock dividend.
E) Its monthly depreciation expense.

Question

Quizplus · Accepted Answer

The cash proceeds from selling one of its divisions will directly impact the company's cash balance and should be included in the monthly cash budget. The other options do not necessarily represent cash inflows or outflows that directly affect the company's cash position on a monthly basis.

Which of the Following Items Should a Company Report Directly