Asked by
Agatha Ngoma
on Oct 10, 2024Verified
The cash budget is the starting point in preparing the master budget.
Cash Budget
A detailed plan showing how cash resources will be acquired and used over a specific time period.
Master Budget
A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.
- Recognize the role of sales forecasts in budget preparation.
Verified Answer
LD
Learning Objectives
- Recognize the role of sales forecasts in budget preparation.