Asked by Abigail Aleman on Jun 13, 2024
Verified
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 comprehensive financial planning document that consolidates all of a company's budgets for various departments or activities.
- Acquire knowledge about the procedure and value of cash budgeting.
Verified Answer
AC
Anthony CastaldiJun 16, 2024
Final Answer :
False
Explanation :
The starting point in preparing the master budget is typically the sales forecast or sales budget, from which the production and other budgets are then derived, leading up to the cash budget.
Learning Objectives
- Acquire knowledge about the procedure and value of cash budgeting.
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