Which of the following statements is false about budgeted income statement and budgeted balance sheet ? a . The ending finished goods inventory will be included in the budgeted balance sheet . b. None of the given answers . c . The budgeted income statement must be prepared first before preparing the budgeted balance sheet . d. Credit purchases will be included in the accounts payable in the budgeted balance sheet. e. The cash budget must be prepared first before preparing both the budgeted income statement and the budgeted balance sheet.
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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