Which of the following is NOT included in a cash budget?

A cash budget is a tool used to forecast cash inflows and outflows over a specific period, focusing exclusively on cash transactions. It is essential for managing cash flow and ensuring that a business has enough liquidity to meet its obligations.

Credit sales or purchases are not included in a cash budget because they represent transactions where cash is not immediately exchanged. Instead, they affect accounts receivable and accounts payable, reflecting promises to pay or receive cash at a later date. The cash budget prioritizes actual cash that is expected to come in and go out during the budgeting period, making it ineffective to include credit transactions.

On the other hand, cash purchases, wages, and other expenses all directly impact cash flow and are thus essential components of the cash budget. Cash purchases involve immediate payment, wages are a direct cash outflow to employees, and other expenses typically entail cash expenditures, making them crucial for cash flow management. This is why credit transactions do not belong in a cash budget, as they do not reflect immediate cash flow.