Which of the following statements is true?

Question

Quizplus · Accepted Answer

The budgeted balance sheet is prepared after the cash budget because it includes the projected ending cash balance and other financial information derived from the cash budget. A is incorrect because the sales budget is typically the first budget prepared in the master budget. B is incorrect because the direct materials purchases budget is needed to prepare the cash budget. D is incorrect because service firms also need to prepare a master budget. E is incorrect because the cost of goods sold budget depends on the direct labor and overhead budgets.

Which of the Following Statements Is True