A Cash Budget for the Six Months Ended 30 June

Multiple Choice

A cash budget for the six months ended 30 June shows an anticipated overdraft of approximately £4,500. Which of the following would not reduce the expected overdraft?

A) Allowing customers one month's credit, instead of two months in which to pay.
B) Suppliers allowing one month's credit on purchases made, instead of cash terms.
C) Assets being leased rather than purchased for cash during the six month period.
D) Charging depreciation on fixed assets at 20% on the straight line basis, rather than 25%.