Question

_______ budget gives an estimate of the anticipated receipts and payments of cash during the budget period.

• A. Sales
• B. Production
• C. Cash
• D. Master

Answer 1

The correct option is C Cash

• Cash budget gives the estimated cash receipts and cash payments of a particular period. These cash inflows and outflows includes all the revenues collected and expenses planned during a particular period.
• A sales budget is an outline of sales expectations set by management, usually for a period of one year. The features of a sales budget usually include a breakdown of sales for each quarter and the number of units to be sold.
• The production budget calculates the number of units of products that must be manufactured, and is derived from a combination of the sales forecast and the planned amount of finished goods inventory to have on hand.
• The master budget is the aggregation of all lower-level budgets produced by a company's various functional areas, and also includes budgeted financial statements, a cash forecast, and a financing plan.