Conan Industries collected $100,000 from customers in 2019. Of the amount collected,$25,000 was from revenue earned on account in 2018. In addition, Conan earned $40,000 of revenue in 2019, which will not be collected until 2020. Conan Industries also paid $78,000 for expenses in 2019. Of the amount paid, $30,000 was for expenses incurred on account in 2018. In addition, Conan incurred $42,000 of expenses in 2019, which will not be paid until 2020.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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