• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Cash budget

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cash budget

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 7, 2020 at 3:44 am #576177
    lchen
    Member
    • Topics: 17
    • Replies: 15
    • ☆

    Morning sir,

    May I ask a question relates to depreciation cost in cash budget. I remember that you explain in FA that depreciation is a capital revenue which do not show in cash statement. But there is a question in bpp asking to calculate the cash budget and it states that “fixed overhead includes depreciation of 2280 dollars per month” and the answer uses fixed overhead less depreciation to appear on statement of cash flow which confused me.

    Many thanks for reading through!

    July 7, 2020 at 9:15 am #576211
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54671
    • ☆☆☆☆☆

    Depreciation is an expense not revenue.

    However it is not a cash flow and is therefore not relevant in a cash budget. (The initial cost of the asset is a cash flow and the entire cost is included in the cash budget at the time it is paid)

    July 7, 2020 at 10:13 am #576223
    lchen
    Member
    • Topics: 17
    • Replies: 15
    • ☆

    Thanks for the explanation, so fix production cost as an expense should less the depreciation which is the actual amount we need to pay for the month. Am I right sir?

    July 7, 2020 at 4:38 pm #576258
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54671
    • ☆☆☆☆☆

    You are correct – the actual cash paid is the fixed costs less the depreciation.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • huunghia18499 on Foreign currency- Functional currency – ACCA (SBR) lectures
  • DuDE on Inventory Control (part 1) The EOQ Formula – ACCA Management Accounting (MA)
  • Nabiha on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • John Moffat on The Statement of Financial Position – ACCA Financial Accounting (FA) lectures
  • Bainamura on The Statement of Financial Position – ACCA Financial Accounting (FA) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in