Which of the following statements is false with respect to a budgeted income statement? Its interest expense flows from the financing section of the cash budget. Its net income will impact the ending retained earnings balance shown on the balance sheet. Its cost of goods sold is derived from the corresponding dollar amount shown in the production budget. Its selling and administrative expenses may include depreciation expense even though it is not a cash flow.
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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