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Which of the following would have no effect, either direct or indirect, on an organization's cash budget? None of the answers is correct, since all of these items would have some influence. Outlays for professional labor. Sales revenues. Raw material purchases. Advertising expenditures.

Respuesta :

Outlays for professional labor, Sales revenues,Raw material purchases, Advertising expenditures all these will have either direct or indirect effect , on an organization's cash budget-So none of the answer is correct.

Explanation:

Lets try to understand the below mentioned concept:-

  • Outlays for professional labor: it refers to the cost that is incurred for the acquisition of a good (inventory )or service(consulting services)
  • Sales Revenue:It refers to the amount  business gains/realise by the sale of its product or goods and services.
  • Raw Material Purchases: The cost incurred by the company to acquire its raw material
  • Advertising expense: The expense incurred by an y business house on the advertisement of its product.

Hence it is clear from the above discussion that all these expense have a direct or indirect effect on an organizations cash budget.

So the answer is None of these

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