The primary purpose in preparing a budget is
A) for risk analysis.
B) to estimate sales.
C) for profit planning.
D) for cash planning.

Question

Quizplus · Accepted Answer

The primary purpose of preparing a budget is for cash planning. While risk analysis, estimating sales, and profit planning may all be elements included in a budget, the overall intention is to plan and forecast the cash flow of a business.

The Primary Purpose in Preparing a Budget Is