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:

Common Law

A body of law derived from judicial decisions of courts and similar tribunals, rather than from statutes or constitutions.

Federal Law

Legislation that has been passed by the United States Congress and applies nationwide.

Express Contract

A contract in which the terms of the agreement are explicitly stated verbally or in writing.

Implied Contract

a contract formed by the actions, behavior, or circumstances of the parties involved, rather than written or spoken words.