Question

Which of the following would represent the order in which most master budgets are prepared? Multiple Choice Sales, Income Statement, Cash, Purchases Purchases, Cash, Sales, Income Statement Purchases, Sales, Cash, Income Statement Sales, Purchases, Cash, Income Statement

Answer 1

Sales, Purchases, Cash, Income Statement

Step-by-step explanation:

The Budgeting Process Starts with determining the Number of Units that need to be sold.Then the Production Budget is prepared to determine the number of units which need to produced to meet the sales.Within the production Budget we can establish the amount of Purchases the firm need to make to satisfy production.A Cash Budget is then prepared to establish Balances of cash from inflows (sales budget) and outflows (purchases budget). then Lastly the Income Statement.