A master budget consists of a set of operating budgets and a set of financial budgets for a specific accounting period.

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A master budget is a comprehensive plan that includes operating budgets such as sales, production, and expenses, as well as financial budgets such as cash flow, capital expenditures, and balance sheet. The operating budgets represent the company's anticipated business activities, while the financial budgets reflect the impact of those activities on the company's cash and liquidity. Together, these budgets provide a roadmap for the company's short-term and long-term financial goals.

A Master Budget Consists of a Set of Operating Budgets