Which of the following statements is NOT correct concerning the Cash Budget? Multiple Choice The Cash Budget
Question:
Which of the following statements is NOT correct concerning the Cash Budget?
Multiple Choice
The Cash Budget should be prepared before the Budgeted Income Statement.
The Cash Budget should be prepared before the Budgeted Balance Sheet.
It is not necessary to prepare any other budgets before preparing the Cash Budget.
The Cash Budget builds on earlier budgets and schedules as well as additional data.
The BRS Corporation makes collections on sales according to the following schedule:
30% in month of sale
65% in month following sale
5% in second month following sale
The following sales have been budgeted:
Sales
April $ 190,000
May $ 120,000
June $ 110,000
Budgeted cash collections in June would be:
Multiple Choice
$120,500
$110,000
$111,000
$110,950
The production budget is dependent on the Sales budget, desired ending units and beginning balance in units.
True or False
Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone