The payment of wages to an employee is a source of cash.

Wages

Payments made by employers to employees, usually at hourly, daily, or piecework rates, for the labor or services provided.

Source Of Cash

Activities or transactions that increase the available cash in an organization, such as sales, issuing bonds, or taking out loans.

Gain insight into the concept and criticality of cash budgeting in financial strategy.

Verified Answer

Final Answer :

False

Explanation :

The payment of wages to an employee is considered a use of cash, not a source, as it involves cash flowing out of the business to the employees.

Learning Objectives

Gain insight into the concept and criticality of cash budgeting in financial strategy.