In Preparing an Operating Budget, the Sales Budget Is Prepared

question 97

Multiple Choice

In preparing an operating budget, the sales budget is prepared first. Which of the following is the last component of the operating budget?

• A)Electricity and gas
• B)Capital expenditures
• C)Budgeted income statement
• D)Inventory, purchases and cost of sales

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Definitions:

Financial Position

An entity's economic state, represented by its assets, liabilities, and equity at a given point in time.

Acquisition Differential

The gap between what is paid for an acquisition and the fair value of the clearly identified assets acquired.

Impairment Losses

Financial recognition of the reduced recoverable value of an asset, below its carrying amount on the balance sheet.

Equity

It denotes the residual interest in the assets of the entity after deducting liabilities, often referred to as shareholders' equity.