Assets

question 156

Multiple Choice

Assets:

• A)represent the amounts earned by a company.
• B)must equal the liabilities of a company.
• C)must equal the stockholders' equity of the company.
• D)represent the resources presently controlled by a company.

---

Definitions:

Finished Goods Inventory

The total value of all completed products that have not yet been sold by a company.

Cash Collections

The process of gathering all cash receipts from sales or other sources during a particular period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, primarily used to assess whether a company has sufficient cash to fulfill its operations and financial commitments.