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Should Depreciation Be Included in Cash Budget?

Chloe Bennett • • 6 min read
Should Depreciation Be Included in Cash Budget?
★ Key Takeaways

Depreciation Is a Monthly Expense Allowed by Accounting Standards to Reduce the Value of a Company's Assets. This Figure Is a Non-Cash Expense, Meaning the Company Is Not Actually Spending Cash. Therefore, Depreciation Does Not Fit into the Cash Budget, Which Tracks All Real Cash Inflows and Outflows.

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Direct Answer • Key Takeaway

Depreciation Is a Monthly Expense Allowed by Accounting Standards to Reduce the Value of a Company's Assets. This Figure Is a Non-Cash Expense, Meaning the Company Is Not Actually Spending Cash. Therefore, Depreciation Does Not Fit into the Cash Budget, Which Tracks All Real Cash Inflows and Outflows.

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Chloe Bennett
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Chloe Bennett

Chloe Bennett explores the intersection of pop culture, streaming entertainment, digital trends, and contemporary lifestyle. Her weekly commentary reaches thousands of culture enthusiasts.