The single most important output in preparing financial budgets is the
A) sales forecast.
B) determination of the unit cost of the product.
C) cash budget.
D) budgeted income statement.

Question

Quizplus · Accepted Answer

While all of the options listed are important components in preparing financial budgets, the cash budget is the single most important output because it helps businesses plan and manage their cash flows effectively. The cash budget forecasts the expected cash inflows and outflows for a specified period, typically a month or a year, and allows businesses to anticipate potential cash shortfalls or surpluses. This information is crucial in making informed decisions about investments, financing, and business operations.

The Single Most Important Output in Preparing Financial Budgets Is