Which of the following is true of the cash budget?
A)It is prepared first in the master budget.
B)It is also called budgeted balance sheet.
C)It consists of cash receipts and cash payments.
D)It is the base for the preparation of the sales budget.

Question

Quizplus · Accepted Answer

The cash budget consists of cash receipts and cash payments and is used to project a company's cash position for a specific period of time. It is usually prepared after the sales budget and is an important component of the overall master budget. However, it is not the first budget to be prepared and it is not the same as the budgeted balance sheet.

Which of the Following Is True of the Cash Budget