Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?
A) Payment 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 adjustment rather than a cash transaction, so it does not directly affect the cash budget.

Which of the Following Is NOT Directly Reflected in the Cash