Which One of the Following Represents the Correct Order in Which

question 50

Multiple Choice

Which one of the following represents the correct order in which the budget documents listed for a manufacturing company would be prepared?

• A)Production budget, marketing budget, direct materials budget, indirect labour budget
• B)Sales budget, cash budget, direct materials budget, direct labour budget
• C)Selling and administrative expense budget, budgeted income statement, cash budget, budgeted balance sheet
• D)Sales budget, cash budget, marketing budget, direct materials budget

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Definitions:

Face Value

The nominal or dollar value printed on a security, such as a bond or stock certificate, representing the amount due to the holder at maturity, not including interest or dividends.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date, often at a premium price.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is often a nominal amount.

Call Premium

The extra amount over the par value that a buyer must pay to purchase a call option, which gives the right, but not the obligation, to buy an asset at a specified price.