Which one of the following best describes a master budget?
A)It is an interrelated long-term plan and operating budgets.
B)It includes financial budgets and a long-term plan.
C)It includes interrelated financial budgets and operating budgets.
D)It is all the accounting journals and ledgers used by a company.

Question

Quizplus · Accepted Answer

A master budget includes interrelated financial budgets and operating budgets, such as a sales budget, production budget, and cash budget, which are all linked together to create a comprehensive plan for the entire organization. It typically covers a period of one to three years and serves as a roadmap for achieving the company's overall goals and objectives. It does not include accounting journals and ledgers used by a company.

Which One of the Following Best Describes a Master Budget