The cash budget can be prepared before the sales budget.

Name: The cash budget can be prepared before the sales budget.
Brand: Quizplus
Rating: 4.7 (53 reviews)

Question

Quizplus · Accepted Answer

The sales budget is prepared first, as it provides information on the expected cash inflows. The cash budget relies on this information to estimate cash inflows and outflows, allowing for the projection of the company's cash position. Therefore, the cash budget cannot be prepared before the sales budget.

The Cash Budget Can Be Prepared Before the Sales Budget