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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 forecast of cash inflows and outflows for a business or individual for a specific period of time.
Budgeted Income Statement
A financial statement that forecasts a company's revenue, expenses, and net income for a future period.
Budgeted Balance Sheet
A projection of a company's financial position at a future date, detailing assets, liabilities, and equity.
- Understand the concept of budgeting and its importance in financial planning.
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Learning Objectives
- Understand the concept of budgeting and its importance in financial planning.
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