As the Sales Forecast Is the Usual Starting Point for Budgeting

question 60

True/False

As the sales forecast is the usual starting point for budgeting, not-for-profit entities do not prepare budgets as they have no sales.

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation that results in higher depreciation expense in the early years of an asset's life.

Estimated Life

The expected duration or operational lifespan of an asset, determining how long it will be useful and depreciated in accounting records.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life, also considered in depreciation calculations.

Asset Improvements

Enhancements or upgrades made to a company's assets to increase their efficiency, productivity, or value.