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.
Which of the following statement is not true as part of building financial statement forecast model?
While the bare minimum may be last year's
Financial statement
Using the historical data from the top competitor of the industry is important to create some benchmarks to assets if the company has been doing well or poorly.
All statements are true.
We need to get historical financial statements for at least three years - five is better and make sure that they are based on consistent accounting polices.
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