Which of the following statements is not true? Sales budgets are prepared before

ID: 2572427 • Letter: W

Question

Which of the following statements is not true?

Sales budgets are prepared before the cash budgets.

Budgeted balance sheets are dependent upon budgeted income statements.

Budgeted income statements include depreciation expenses.

Cash budgets include depreciation expenses.

Merchandise budgets show budgeted units and dollar amounts.

Sales budgets are prepared before the cash budgets.

Budgeted balance sheets are dependent upon budgeted income statements.

Budgeted income statements include depreciation expenses.

Cash budgets include depreciation expenses.

Merchandise budgets show budgeted units and dollar amounts.

Depreciation is a noncash charge. Only cash payments and receipts appear on cash budget.

Thus option D will be correct answer.

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