The Revenues Budget Is Prepared After All Other Operating Budgets

question 115

True/False

The revenues budget is prepared after all other operating budgets are prepared as it is at that point that the amount of projected expenses are known and so a target revenue can be calculated to cover those expenses and provide a target profit.

---

Definitions:

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future date.

Accrued Interest

Accrued Interest is the interest that has accumulated on a debt or investment over a specific period but has not yet been paid.

Journal Entry

A record in accounting that logs every financial transaction of a business in double-entry bookkeeping.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, typically presented as a line item on the income statement.