Which Is the Correct Order of Budget Preparation for a Merchandising

question 20

Short Answer

Which is the correct order of budget preparation for a merchandising company? a. Selling and administrative expense budget, cash budget, budgeted income statement, budgeted balance sheet.
B) Sales budget, cash budget, selling and administrative expense budget, budgeted income statement.
C) Sales budget, cash budget, budgeted balance sheet, budgeted income statement
D) Cash budget, selling and administrative expense budget, budgeted income statement, budgeted balance sheet.

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Definitions:

Long-term Securities

Financial instruments that typically have a maturity period of more than one year and are used to finance longer-term investments.

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity above the normal level.

Capital Requirement

The amount of capital a bank or financial institution must hold to shield against financial risk and comply with regulatory standards.

Net Operating Working Capital

The difference between a company's current assets and its current liabilities, excluding interest-bearing debt.