Which of the following statements is NOT correct concerning the Cash Budget?

A) It is not necessary to prepare any other budgets before preparing the Cash Budget.
B) The Cash Budget should be prepared before the Budgeted Income Statement.
C) The Cash Budget should be prepared before the Budgeted Balance Sheet.
D) The Cash Budget builds on earlier budgets and schedules as well as additional data.

Cash Budget

A financial plan detailing a company's cash inflows and outflows over a specific period, used for managing cash flow and ensuring liquidity.

Budgeted Income Statement

A forecasted income statement showing projected revenues, expenses, and net income for a specific period.

Budgeted Balance Sheet

A financial statement projected for a future date, outlining the anticipated assets, liabilities, and equity based on planned operations and capital activities.