Which of the following statements is TRUE about the financial budget?
A) It includes the sales budget.
B) It must be completed before the budgeted income statement is prepared.
C) It includes the cash budget and the budgeted balance sheet.
D) It includes the capital expenditures budget.

Question

Quizplus · Accepted Answer

The financial budget includes the cash budget and the budgeted balance sheet. The sales budget is a part of the operating budget, which feeds into the financial budget. The budgeted income statement is prepared using information from the financial budget, so it is completed after the financial budget. The capital expenditures budget is also a part of the financial budget.

Which of the Following Statements Is TRUE About the Financial