Preparing the master budget begins by establishing _____.
A)a targeted balance sheet
B)a targeted income statement
C)the expected cash
D)the expected sales

Question

Quizplus · Accepted Answer

The first step in preparing a master budget is to establish the expected sales for the budget period. This information is necessary to estimate the revenue for the period and to plan production, inventory, and labor accordingly. Once the expected sales are established, the budgeting process can continue with the preparation of the rest of the budget, including the income statement, cash budget, and balance sheet.

Preparing the Master Budget Begins by Establishing _____