Which of the following statements is not true?
A) Preparing operating budgets for service businesses is normally simpler than preparing them for retailers or manufacturers.
B) A service business does not need to prepare a cash budget.
C) GST estimates need to be included in a cash budget.
D) The emphasis in budgeting for not-for-profit organisations tends to be on cash flows and the final cash position rather than on profits, income and expenditure.

Question

Quizplus · Accepted Answer

All businesses, including service businesses, need to prepare a cash budget to ensure they have sufficient cash to meet their operating and capital expenditures. A cash budget projects the expected inflows and outflows of cash over a period of time and helps businesses identify any potential cash shortfalls.

Which of the Following Statements Is Not True