Which budget must be completed after a cash budget is prepared?

Question

Quizplus · Accepted Answer

The budgeted income statement must be completed after the cash budget is prepared, as the cash budget provides information on expected cash inflows and outflows, which are used to project the company's net income for the budgeted period. The other budgets listed (capital expenditures, sales, merchandise purchases, general and administrative expenses) may be completed before or after the cash budget, depending on the company's specific budgeting process.

Which Budget Must Be Completed After a Cash Budget Is