In Projected Financial Statements, What Is Used as a Plug

question 36

Multiple Choice

In projected financial statements, what is used as a plug figure?

• A) Retained earnings
• B) Fixed assets
• C) The Cash Account
• D) Long-term liabilities
• E) Stockholders' equity

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Definitions:

Raw Materials

Relates to the basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing finished goods.

Physical Possession

The actual holding or occupying of an object, property, or asset by an individual or entity.

Legal Title

Refers to the formal right of ownership of a property or asset.

Physical Count

The process of manually counting the actual inventory on hand at a certain period to verify the quantities listed in the accounting records.