The last step in the preparation of the master budget is the budgeted income statement.

Question

Quizplus · Accepted Answer

The last step in the preparation of the master budget is typically the budgeted cash flow statement or the budgeted balance sheet, not the budgeted income statement. The budgeted income statement is prepared before these documents to predict the net income for the period, which then feeds into the cash flow and balance sheet forecasts.

The Last Step in the Preparation of the Master Budget