The budget that is often considered to be the most important financial budget is the
A) cash budget.
B) capital expenditure budget.
C) budgeted income statement.
D) budgeted balance sheet.

Question

Quizplus · Accepted Answer

The cash budget is considered the most important financial budget as it helps in managing day-to-day cash flows and determining the availability and requirement of cash at different periods. It facilitates the planning and controlling of cash inflows and outflows, and helps in identifying any cash shortages or surpluses. The cash budget takes into account all the other financial budgets, such as sales, production, and capital expenditures, and ensures that there is enough cash available to meet the company's short-term and long-term financial obligations.

The Budget That Is Often Considered to Be the Most