Respond that the following statements are TRUE or FALSE:

1) A master budget is the financial plan for a specific segment of an organization.

2) Budgeted financial statements are financial statements based on budgeted amounts rather than actual amounts.

3) Components of the master budget are: the operating budget, the capital expenditures budget and the financial budget.

4) Preparation of the production budget is the first step in the preparation of operating budget.

5) The capital expenditures budget represents the company's plan for purchasing the long-term assets.