In preparing financial budgets:
A) The budgeted balance sheet is usually prepared last.
B) The cash budget is usually not prepared.
C) The budgeted income statement is usually not prepared.
D) The capital expenditures budget is usually prepared last.
E) The merchandise purchases budget is key.

Question

Quizplus · Accepted Answer

The budgeted balance sheet is usually prepared last because it requires information from the budgeted income statement, cash budget, and other budget schedules.

Note: Choices B, C, D, and E are incorrect because the cash budget, budgeted income statement, and capital expenditures budget are important budget schedules that are typically prepared, while the merchandise purchases budget may be important for some businesses but is not necessarily key for all businesses.

In Preparing Financial Budgets