Answer (D) is correct . A cash budget may be prepared monthly or even weekly to facilitate cash planning and control. The purpose is to anticipate cash needs while minimizing the amount of idle cash. The cash receipts section of the budget includes all sources of cash. One such source is the proceeds of loans.
Answer (A) is incorrect because Funded depreciation involves cash outlays.
Answer (B) is incorrect because Purchases of supplies involves cash outlays.
Answer (C) is incorrect because The extinguishment of debt involves cash outlays.
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