Indicate whether the statements are true or false.

Indicate whether the statements are true or false. [Select] One of the major benefits of formal budgeting is the positive effect it can have on employee attitudes. [ Select] Budget preparation is best determined in a top-down managerial approach because management is better informed of operations. [ Select] The task of preparing a budget should be the sole task of the most important department in an organization. [Select] The budgets within the master budget must be prepared in a definite sequence as dictated by GAAP. [Select] The purchases budget depends on information provided by the sales budget. [Select ] The master budget is a small component of the comprehensive budget. [ Select] The master budget consists of three major groups of budget components: the operating budgets, the capital expenditures budgets, and the financial budgets. [Select] The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet. [Select] Traditional budgeting is generally better than activity-based budgeting when attempting to reduce costs by eliminating nonvalue-added activities. [ Select] The sales budget is derived from the production budget. [Select] A manufacturing budget should include a list of equipment to be scrapped and additional equipment To be purchased if the proposed production budget is carried out. [Select] A cash budget is a plan that includes the expected cash receipts and cash expenditures during each of the periods that it covers