Which One of the Following Is a Plan That Will

question 64

Multiple Choice

Which one of the following is a plan that will allow a manufacturing firm to satisfy its sales goals and have on hand the desired amount of inventory at the end of the budget period?

• A) Direct materials usage budget.
• B) Sales budget.
• C) Selling and administrative expense budget.
• D) Production budget.
• E) Sales forecast.

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Definitions:

Note Payable

A written promissory note in which one party agrees to pay another party a definite sum of money either on demand or at a specified future date.

Capital Account

This account records the investments made by owners or shareholders into a company, along with retained earnings and accumulated other comprehensive income.

Capital Balances

The amount of money that partners or owners have invested in a business, often reflected in the equity section of the balance sheet.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, representing the actual earnings retained.