It is necessary to prepare the cash budget and the budgeted income statement before the budgeted balance sheet and budgeted cash flow statement can be prepared.

Question

Quizplus · Accepted Answer

The cash budget and budgeted income statement provide the necessary information required to prepare the budgeted balance sheet and budgeted cash flow statement. Therefore, it is necessary to prepare the cash budget and budgeted income statement first before proceeding with the other financial statements.

It Is Necessary to Prepare the Cash Budget and the Budgeted