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

Question

Quizplus · Accepted Answer

The capital expenditures budget outlines the business's plans for long-term investments, such as property or equipment. This budget must be completed before preparing a cash budget because it directly impacts cash flows by indicating the level of planned spending for non-operating activities. Once the capital expenditures budget is established, the cash budget can then be developed to determine how much cash is available to cover operating expenses and other immediate needs. Therefore, A) Capital expenditures budget must be completed before preparing a cash budget.

Which of the Following Budgets Must Be Completed Before Preparing