What Is the Last Step in Developing the Master Budget

question 5

Multiple Choice

What is the last step in developing the master budget?

• A)preparing the budgeted balance sheet
• B)preparing the cost of goods manufactured budget
• C)preparing the budgeted income statement
• D)preparing the cash budget

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Definitions:

Other Income

Any revenue other than revenue from sales. It appears in a separate section on the income statement. Examples: Rental Income and Storage Fees.

Merchandise Inventory

Items purchased for resale to customers in the ordinary course of business, representing a current asset on the balance sheet.

Sales Discount

Amount a customer is allowed to deduct from the bill total for paying a bill during the discount period.

Revenue Account

An account in the general ledger that records the income generated by a company from its normal business operations.