For Better Management Acceptance the Flow of Input Data for Budgeting

question 205

Multiple Choice

For better management acceptance the flow of input data for budgeting should begin with the

• A) accounting department.
• B) top management.
• C) lower levels of management.
• D) budget committee.

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Definitions:

Unadjusted Trial Balance

A financial report showing all accounts and their balances before adjustments, serving as a check on the correctness of the sums of debit and credit balances.

Aging of Accounts Receivable

A document or method that organizes a business's accounts receivable based on the duration an invoice has remained unpaid.

Bad Debts Expense

An expense reported on the income statement, representing the non-collectable accounts receivable from extending credit to customers.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that is not expected to be collected, used to create a more accurate picture of a company's financial health.