Operating Budget: The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget. Cash Budget : The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period. To explain: Whether the cash budget should be prepared before the operating income budget.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Hello tutor please given General accounting question answer do fast and properly explain all answer

What is the company net income for the year?

Westfield corp is evaluating a project general accounting requiring $500,000 in asset

Answer 2

Question

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Answer 6

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Answer 7

Chapter 6, Problem 6.15Q

To determine

Operating Budget:

The operating budget is that budget which is prepared to plan all the operating activities of an organization for a particular period. This budget combines all the sales, production, raw materials, direct labor, manufacturing overhead and selling and administrative expenses budget.

Cash Budget:

The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the cash inflows and outflows of a business for the given financial period.

To explain: Whether the cash budget should be prepared before the operating income budget.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 6 - What are the four elements of the budgeting cycle?Ch. 6 - Define master budget.Ch. 6 - Strategy, plans, and budgets are unrelated to ore...Ch. 6 - Budgeted performance is a better criterion than...Ch. 6 - Production managers and marketing managers are...Ch. 6 - Budgets meet the cost-benefit test. They force...Ch. 6 - Define rolling budget. Give an example.Ch. 6 - Outline the steps in preparing an operating...Ch. 6 - The sales forecast is the cornerstone for...Ch. 6 - Prob. 6.10Q

Solution Summary: The author explains that the cash budget should be prepared after the operating income budget.

Concept explainers

Want to see the full answer?

Chapter 6 Solutions