Question

In formulating the operating budget, the last step is usually the preparation of the:

(a) budgeted income statement
(b) budgeted balance sheet.
(c) budgeted statement of cash flows
(d) cash budget)

Answer 1

The last step in formulating the operating budget is usually the preparation of the cash budget. The cash budget helps a company determine its cash inflows and outflows, enabling it to make strategic financial decisions.

Step-by-step explanation:

The last step in formulating the operating budget is usually the preparation of the cash budget. The cash budget is a detailed projection of a company's cash inflows and outflows over a specific period of time, typically a month or a year. It helps the company determine how much cash it needs to meet its financial obligations and make strategic decisions on spending and saving.