Accounting 9706 · AS & A Level · Budgeting and budgetary control

Budgeting and budgetary control — practice question

Consult Source A in the insert.
(a)[2]

Define what is meant by the term ‘master budget’.

(b)[14]

Prepare the cash budget covering the months of January, February and March 2025.

(c)[2]

Calculate the total amount of capital Mo needs to invest on 1 January 2025.

(d)[7]

Advise Mo whether he should prepare a master budget every year or not. Justify your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: A master budget is an overall financial plan.

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