Asked by Fazena Jaikaran on May 21, 2024
Verified
The financial budgets are prepared before the operating budgets.
Financial Budgets
Plans that predict revenues, expenses, and cash flows over a specific period, helping businesses allocate resources and manage finances effectively.
Operating Budgets
Comprehensive financial plans used by an organization to forecast its expected revenues and expenses for a future period, guiding daily operations.
- Recognize the sequence of budget preparation and the interconnectivity of budgets.
Verified Answer
NK
navdeep kaur123May 21, 2024
Final Answer :
False
Explanation :
Operating budgets are prepared before financial budgets because they provide the detailed revenue and expense forecasts that are necessary to create the overall financial plans, such as the cash flow budget, balance sheet forecast, and income statement.
Learning Objectives
- Recognize the sequence of budget preparation and the interconnectivity of budgets.
Related questions
In Order to Develop a Budgeted Balance Sheet the Previous ...
The Production Budget Is Typically Prepared Prior to the Sales ...
The Budgeted Income Statement Is Typically Prepared Before the Budgeted ...
Wala Incorporated Bases Its Selling and Administrative Expense Budget on ...
The Budget Procedure That Requires Managers to Estimate Sales, Production ...