Which statement best describes a characteristic of the master budget?

Question

Quizplus · Accepted Answer

The budgeted balance sheet is prepared after the cash budget because it provides information on the cash position of the company, which is needed to plan for other activities such as purchases, investments, and financing. The other options are incorrect - service firms also need to prepare a master budget, the cash budget usually comes before the production and materials budgets, and the production budget is usually not the first budget to be prepared in the master budget.

Which Statement Best Describes a Characteristic of the Master Budget