Q244
A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?
A.
Capital cost of a new collection vehicle
B.
Depreciation of the machinery
AnswerC.
Operatives wages
D.
Fuel for the collection Vehicles
Answer: Option B
Solution
Answer: Option B
Solution:
A Local Authority is preparing cash Budget for its refuse disposal department. Depreciation of the machinery would not be included in the cash budget. Depreciation is not a cash item and would be excluded from the cash budget.