Question

Which budget is the starting point in preparing financial budgets?

a) Cash budget
b) Sales budget
c) Production budget
d) Capital expenditure budget

Answer 1

The sales budget is the starting point in preparing financial budgets as it identifies the expected sales revenue for a given time period.

Step-by-step explanation:

The starting point in preparing financial budgets is the sales budget. The sales budget identifies the expected sales revenue for a given time period, such as a month or a quarter. It serves as the foundation for other budgets, such as the production budget, cash budget, and capital expenditure budget.