Which one of the following items would be included in a cash budget?

In the context of a cash budget, sales revenue is essential because it represents the cash inflow generated from the sale of goods and services during a specific period. Cash budgets focus on the expected cash receipts and disbursements, making it vital to accurately project the cash that will be available from operations. Sales revenue is a primary source of cash and is directly tied to the company’s ability to meet its operating expenses, investments, and other financial obligations.

While dividends and loan proceeds are important financial activities, they are typically considered in other financial statements rather than a cash budget focused on operational cash flow. Advertising expenses, on the other hand, are recorded as cash outflows but are not considered cash inflows, making them less relevant to determining the cash available in the budget. Thus, sales revenue is rightly identified as a necessary component of a cash budget since it directly impacts the liquidity and financial health of the business.