A master budget ________.
A) is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions
B) is only prepared for manufacturers as they are the only type of company with material purchases and work-in-process accounts.
C) improves companies' market capitalization and evolves from both the investing and financing decisions
D) is another name given to the financial budget

Question

Quizplus · Accepted Answer

A master budget is a comprehensive financial plan that includes all aspects of a company's operations, including sales, production, capital expenditures, and financing. It is created based on both the company's operating and financing decisions and serves as the initial plan for what the company intends to accomplish in the period. It is not just limited to manufacturers but can be prepared for any type of company. It is not synonymous with the financial budget, which is only one component of the master budget.

A Master Budget ________