Which of the Following Would Depict the Logical Order for Preparing

question 29

Multiple Choice

Which of the following would depict the logical order for preparing (1) a production budget, (2) a cash budget, (3) a sales budget, and (4) a direct-labour budget?

• A)production budget, sales budget, direct-labour budget, and cash budget.
• B)cash budget, sales budget, production budget, direct-labour budget.
• C)cash budget, production budget, sales budget, and direct-labour budget.
• D)sales budget, production budget, direct-labour budget, and cash budget.
• E)sales budget, production budget, cash budget, and direct-labour budget.

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Definitions:

Deferred Tax Liability

A tax obligation that a company owes but can postpone to future periods.

Interest Revenue

Income earned by an entity for lending funds or making financial investments that pay interest.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected on the income statement as a reduction of profits.

Retained Earnings

The accumulated net income that a company decides to keep rather than distribute to shareholders as dividends, often reinvested in the business or used to pay off debt.