The Process of Planning Future Business Actions and Expressing Them

question 11

Multiple Choice

The process of planning future business actions and expressing them as a formal plan is called:

• A) Budgeting.
• B) Cost accounting.
• C) Managerial accounting.
• D) Variance analysis.
• E) Standard cost analysis.

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Definitions:

General Ledger

The main accounting record of a business that uses double-entry bookkeeping, which contains all the financial accounts and transactions of the company.

Subsidiary Ledgers

Detailed records that contain information about specific accounts, such as accounts receivable or payable, that support the summarized data in the general ledger.

Sales Invoice

A paper provided by the seller to the buyer that outlines the goods or services offered, the total due, and the conditions of payment.

Credit Memorandum

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an earlier invoice.