In a Merchandising Organization, the Merchandise Purchases Budget Replaces What

question 172

Multiple Choice

In a merchandising organization, the merchandise purchases budget replaces what budget from a manufacturing firm?

• A)the administrative expense budget
• B)the pro-forma income statement
• C)the production budget
• D)the cost of goods sold budget

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Definitions:

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

Financial Statements

Records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Financial Position

An overview of a company's financial situation, encompassing its assets, liabilities, and equity at a specific point in time.