Which of the Following Statements Is Not Correct

question 43

Multiple Choice

Which of the following statements is not correct?

• A) The sales budget is the starting point in preparing the master budget.
• B) The sales budget is constructed by multiplying the expected sales in units by the sales price.
• C) The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
• D) The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current perioD.
• The sales budget is always completed first.

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Definitions:

Necessary Evil

A term used to describe something undesirable but considered unavoidable for achieving a better outcome.

Nineteenth Century

The period from January 1, 1801, to December 31, 1900, characterized by significant industrial, cultural, and political changes worldwide.

Elijah Lovejoy

An American Presbyterian minister, journalist, and news editor who was an abolitionist and died protecting his press from a pro-slavery mob.

Abolitionist Newspaper Editor

An individual who managed or edited a newspaper dedicated to the cause of abolishing slavery.