Which of the Following Statements Is Not Correct

question 27

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 since managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current perioD.

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Definitions:

Prepare for the Worst

A strategy of planning for or anticipating the most adverse outcome in a situation.

Thinking Patterns

The habitual ways in which an individual processes information, perceives situations, and makes decisions.

Spouses

Legally married partners or significant others in a committed relationship.

Remarry

The action of getting married again after a previous marriage has ended, either through divorce or the death of a spouse.