Which of the following is NOT a part of a Cash Budget?

A cash budget is a financial tool that helps businesses anticipate their cash flow over a specific period. It includes the incoming and outgoing cash flows, as well as the net cash position at the end of the period.

In this context, receipts refer to all cash inflows, such as sales revenue and collections from accounts receivable. Disbursements encompass all cash outflows, including payments for expenses, salaries, and other operational costs. Additionally, the cash surplus or deficit is a critical component of a cash budget, as it determines whether a business has excess cash available or is facing a shortfall.

Promotion costs, while important to a business’s overall budgeting and financial planning, are typically considered part of operating expenses or a marketing budget rather than a direct element of a cash budget. Therefore, this expense does not fit into the fundamental structure of a cash budget, which focuses primarily on tracking cash inflows and outflows. This understanding reinforces why promotion costs are not included in the standard components of a cash budget.