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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14 days 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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Jose

2 days ago

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

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Jesusa

5 days ago

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

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Kanisha

17 days 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

19 days 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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Skye

2 days ago

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

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Carlton

6 days ago

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

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