CIMA Exam CIMAPRA17-BA2-1 Topic 4 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 86
Topic #: 4

Which of the following is a valid definition of a cash budget?

AA detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.

BA detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

CA detailed budget of estimated cash inflows and outflows incorporating revenue items only.

DA detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

Show Suggested Answer

Suggested Answer: C

https://www.acowtancy.com/textbook/acca-ma/d2-budget-preparation/cash-budgets/notes

by Maryrose at Nov 12, 2024, 10:39 PM

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Yvonne

7 months ago

I'm not sure, but I think it's either A or B. Both seem to make sense.

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Micaela

7 months ago

I agree with Mozell, because a cash budget should include both revenue and capital items.

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Elly

7 months ago

Wait, are we supposed to include depreciation in a cash budget? That's a non-cash expense. Option A is the clear winner here.

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Mozell

7 months ago

I think the answer is A.

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Ricki

7 months ago

Haha, option D is basically just a cash flow statement, not a budget! Nice try, but I'm going with A.

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Dalene

6 months ago

Yeah, option A seems to be the most comprehensive definition.

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Jose

6 months ago

I think option A is the correct definition of a cash budget.

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Jesusa

7 months ago

I agree, option D is more like a cash flow statement.

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Kanisha

7 months ago

I think option C is too narrow. A cash budget needs to account for both revenue and capital items to be truly useful.

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Sharita

7 months ago

A cash budget should definitely include both inflows and outflows, not just one or the other. Option A seems like the most comprehensive definition to me.

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Onita

6 months ago

Option D seems to be too limited, as it only includes estimated cash outflows and not inflows.

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Kirby

6 months ago

I think Option B is more focused on just cash inflows, which may not give a complete picture of the financial situation.

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Skye

6 months ago

Option A is the most comprehensive definition, as it incorporates both revenue and capital items.

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Carlton

7 months ago

I agree, a cash budget should definitely include both inflows and outflows.

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