Asked by Sincerely, Belle on May 21, 2024
Verified
Describe a master budget and the sequence in which the individual budgets within the master budget are prepared.
Master Budget
A comprehensive financial plan that outlines an organization's financial and operational goals.
Individual Budgets
Financial plans that allocate resources and forecast the revenues and expenses for each department or project within an organization.
Sequence Prepared
The order in which tasks or activities are organized and completed.
- Comprehend the process of preparing a master budget and its components.
Verified Answer
PM
Priya MedurMay 27, 2024
Final Answer :
The master budget is an integrated set of operating and financial budgets for a period of time. The master budget usually begins with an estimation of the quantity of sales and the sales budget. Using the sales projections, the remaining operating budgets are prepared, including a budgeted income statement. Using the information from the operating budgets, the financial budgets can then be prepared, including the cash budget, capital expenditures budget, and budgeted balance sheet.
Learning Objectives
- Comprehend the process of preparing a master budget and its components.
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