Which of the following statements is wrong?
A)The cash budget and the profit and loss budget are the same.
B)Everything starts with the production budget.
C)Time lags are factored out of the budgets.
D)All of these are wrong.
E)None of these is wrong.

Question

Quizplus · Accepted Answer

All of the statements provided are incorrect. A) The cash budget and the profit and loss budget are not the same; the cash budget focuses on cash inflows and outflows, while the profit and loss budget focuses on revenues and expenses. B) Not everything starts with the production budget; the process often begins with the sales budget. C) Time lags are actually an important consideration in budgeting and are not factored out.

Which of the Following Statements Is Wrong