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Master Budget

This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.

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February 7, 2023 at 12:36 pm #678474
sagarm
Participant
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The Master budget include asset items buget (True or False)
Ans – False
Why?
February 7, 2023 at 4:35 pm #678487
John Moffat
Keymaster
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I don’t know where you found this question, but there is no such thing as an ‘asset items budget’.
It will usually include a capital expenditure budget (showing budgeted purchases of non-current assets).
February 7, 2023 at 5:46 pm #678496
sagarm
Participant
- Topics: 25
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It’s from Kaplan Exam kit sec b (10mark ) question.
Budgeting Topic
[In study text it was written that master budget include ( statement of P&L , cash flow , SOFP )
And in SOFP – asset and liability both come. ]
So because of this reason I marked this true but the answer given back is False
February 8, 2023 at 8:14 am #678516
John Moffat
Keymaster
- Topics: 57
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Assets and liabilities do appear in the SOFP, but we do not prepare separate budgets for all of them.
There will be a cash budget, an there will be a capital expenditure budget (but this is only for non-current assets). There is no such thing as an ‘asset items budget’.
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