Question
Total sales for the year reported on the Sales Budget will always be equal to expected cash collections for the year.
True false question.
True
False
True false question.
True
False
Answers
GPT-4o mini
False
Total sales reported on the Sales Budget represent the projected revenue based on sales made during the year, while expected cash collections refer to the actual cash that is expected to be received based on that sales activity. Due to factors such as sales made on credit, returns, discounts, and accounts receivable timing, total sales and expected cash collections are not always equal.
Total sales reported on the Sales Budget represent the projected revenue based on sales made during the year, while expected cash collections refer to the actual cash that is expected to be received based on that sales activity. Due to factors such as sales made on credit, returns, discounts, and accounts receivable timing, total sales and expected cash collections are not always equal.