As discussed in the text, when developing the pro forma income statement, the first type of budget prepared is usually the __________.
A) breakeven analysis
B) cash flow budget
C) operating budget
D) sales budget
E) None of the answers apply.

Question

Quizplus · Accepted Answer

The sales budget is typically the first budget prepared because it forecasts the expected sales revenue, which is essential for planning other aspects of the pro forma income statement.

As Discussed in the Text, When Developing the Pro Forma