Which of the following statements Is false with respect to the sales budget Including a schedule of expected cash collections? Multiple Choice Estimating cash collections plays a role in preparing a cash budget. Although the estimated amounts of sales and cash collections may differ from one another on a month-to-month or quarterly basis, these two estimates must equal each other on an annual basis. Estimating sales ultimately impacts the estimated ending retained earnings on the balance sheet. Estimating cash collections also enables managers to estimate accounts receivable on the 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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