Which of the following budgets must be completed before preparing a cash budget?

Question

Quizplus · Accepted Answer

The cash receipts budget outlines the expected inflows of cash from sales, investments, and other sources. This information is necessary for preparing a cash budget, which details expected cash inflows and outflows over a specific period of time. Therefore, the cash receipts budget must be completed before preparing a cash budget. The rolling budget is a continuous budget that is continuously updated and modified. The cash financing budget details the expected sources and uses of cash for financing activities, such as taking out loans or issuing bonds. The pro forma balance sheet and pro forma income statement are used to project a company's financial position and performance, but they are not necessary for preparing a cash budget.

Which of the Following Budgets Must Be Completed Before Preparing