Question 1 of 4cash budgeting
In accounting, a master budget is best described as:
CorrectNot quite
Explanation: A master budget is the overall summary budget of an organisation. It is built up by consolidating all the individual functional budgets (sales, production, cash, etc.) into three end products: a budgeted income statement, a budgeted statement of financial position and a cash budget. A budget covering only one department is a functional budget; a forecast of receipts and payments only is a cash budget on its own; comparing actual against budget after the period has ended is budgetary control, not the master budget itself.