Question

Budgeted depreciation expense would not appear on a:

a. Selling and administrative expense budget.
b. Budgeted income statement.
c. Cash budget.
d. All of these answers are correct.

Answer 1

Answer:

c. Cash budget.

Explanation:

Depreciation: Depreciation is an expense indicating a reduction in the value of fixed assets due to tear and wear, obsolescence, usage, time period, etc. That is shown on the income statement's debit side.

It is a non-cash element that has no effect on the cash balance i.e cash budget and cash flow statement.

Moreover, it shows under the selling and administrative expense budget also