Which of the following statements is NOT correct concerning the Cash Budget?
A) It is not necessary to prepare any other budgets before preparing the Cash Budget.
B) The Cash Budget should be prepared before the Budgeted Income Statement.
C) The Cash Budget should be prepared before the Budgeted Balance Sheet.
D) The Cash Budget builds on earlier budgets and schedules as well as additional data.

Question

Quizplus · Accepted Answer

It is necessary to prepare other budgets, such as the Sales Budget and Production Budget, before preparing the Cash Budget, as these budgets provide important information for cash inflows and outflows.

Which of the Following Statements Is NOT Correct Concerning the Cash