Master (Comprehensive) Budget

Plan of activities expressed in monetary terms of the assets, equities, revenues, and costs that will be involved in carrying out the plans. Simply put, a master budget is a set of projected or planned financial statements. It consists basically of a Pro Forma Income Statement, Pro Forma Balance Sheet, and Cash Budget. A budget is a tool used for both planning and control. At the beginning of the period, the budget is a plan or standard; at the end of the period, it serves as a control device to help management measure its performance against the plan so that future performance may be improved.