The financial budget includes ________.
A) the capital budget and the sales budget only
B) the capital budget and the budgeted income statement only
C) the capital budget, the cash budget and the budgeted balance sheet
D) the cash budget and the purchases budget only

Question

Quizplus · Accepted Answer

The financial budget includes the capital budget, which outlines investments in long-term assets; the cash budget, which details expected cash inflows and outflows; and the budgeted balance sheet, which provides a snapshot of the company's financial position at a specific point in time. The sales budget and purchases budget are components of the operating budget, which is separate from the financial budget. The budgeted income statement is also part of the operating budget, not the financial budget.

The Financial Budget Includes ________