Master budget includes:
ABudgeted P&L and budgeted balance sheet
BOnly cash budget per the ICAI BoS reference
COnly sales budget for the period under review
DOnly standard cost
Answer & Solution
Correct answer: A. Budgeted P&L and budgeted balance sheet
1. The master budget is the comprehensive financial summary of all functional budgets.
2. It includes a budgeted profit and loss statement.
3. It also includes a budgeted balance sheet.
4. Hence master budget covers both budgeted P&L and budgeted balance sheet.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.7.5 ¶2_
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