The First Step in Preparing the Master Budget Is the Preparation

question 139

True/False

The first step in preparing the master budget is the preparation of the budgeted income statement.

---

Definitions:

Operating Cycle

A measure of the time it takes for a business to purchase inventory, sell products, and convert sales into cash.

Invoice Date

This is the date on which an invoice is issued, marking the point when the seller officially requests payment from the buyer for goods or services provided.

Terms of Sale

Conditions agreed upon by a buyer and seller regarding the purchase, including payment and delivery conditions.