The First Step in Developing a Budget Is for the Accounting

question 35

True/False

The first step in developing a budget is for the accounting department to prepare the sales forecast.

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Definitions:

Purchase Price

The amount of money paid to acquire a product or service.

Accounts Payable Period

The average period it takes a company to pay its invoices from suppliers and vendors.

Cash Expenses

Expenses that require an immediate outflow of cash, as opposed to non-cash expenses like depreciation.

Beginning Cash Balance

The amount of cash a company has at the start of a financial period.