he following information was collected in preparation of the company’s budgeted income statement: Wages Expense, $20,000; Sales, $100,000; Depreciation Expense, $10,000; Accounts Receivable, $25,000; Cost of Goods Sold, $40,000. Budgeted net income would be: A. $5,000 B. $30,000 C. $55,000 D. $100,000
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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A. $5,000
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B. $30,000
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C. $55,000
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D. $100,000
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