Which of the following represents the normal sequence in which the below budgets are prepared?
A)Sales Budget, Budgeted Balance Sheet, Budgeted Income Statement
B)Budgeted Balance Sheet, Sales Budget, Budgeted Income Statement
C)Sales Budget, Budgeted Income Statement, Budgeted Balance Sheet
D)Budgeted Income Statement, Sales Budget, Budgeted Balance Sheet

Question

Quizplus · Accepted Answer

The normal sequence in which budgets are prepared is first Sales Budget, then Budgeted Income Statement, and finally, Budgeted Balance Sheet. This is because sales forecast is the starting point for any budget, then the income statement sets out the expected revenues and expenses, and finally, the balance sheet shows the projected financial position. Therefore, the correct sequence is Sales Budget, Budgeted Income Statement, and Budgeted Balance Sheet.

Which of the Following Represents the Normal Sequence in Which