Operating budgets must be completed before the financial budgets can be prepared.

Name: Operating budgets must be completed before the financial budgets can be prepared.
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Question

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Operating budgets calculate the projected income and expenses for a specific period of time, which provides the basis for creating the financial budgets such as cash flow, capital expenditures, and balance sheets. Consequently, the operating budgets should be finished before creating other financial budgets.

Operating Budgets Must Be Completed Before the Financial Budgets Can