In preparing a cash budget, which of the following would be classified as a cash outflow?

A. Collections from customers
B. Sale of equipment
C. Payment of salaries
D. Interest earned on investments



Answer :

Final answer:

In preparing a cash budget, cash outflows represent money leaving the organization, such as payments for various expenses like salaries.


Explanation:

Cash outflow in a cash budget refers to money leaving the organization. In this context, payment of salaries is a prime example of a cash outflow as it involves cash leaving the company to compensate employees for their work.


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