Bullzai, Inc. is creating a cash budget for next six months, starting in January. The expected sales for January are $100,000. The company's expected cash receipts for January are $130,000. Why is there a discrepancy between expected sales and expected cash receipts? Because not all sales are made on cash Because sales include expenses outside the cash budget Because not all sales are made efficiently Because sales are not measured on a monthly basis Which two things must a firm do before creating a cash budget? Monitor and revise the firm's recorded expenses Download budgeting software and inform the bank Determine cash receipts and estimate cash disbursements Get the firm's budgeting method approved by GAAP andilile taxes Why is it problematic to put money toward savings after paying expenses rather than before paying expenses? A person reduces income by setting aside money for expenses before savings. A person increases debt by waiting until after paying expenses to save money. The money a person has left to save after paying expenses is taxed at a higher rate. The money left over may not be sufficient to accomplish savings goals. Which balance sheet item is a discretionary account? Prepaid expenses Accounts receivable Inventory Accounts payable