For a Manufacturing Company, Which of the Following Budgets Does

question 49

Multiple Choice

For a manufacturing company, which of the following budgets does not have to be prepared before a budgeted income statement is prepared?

• A) Budgeted cost of goods manufactured
• B) Budgeted cost of goods sold
• C) Budgeted balance sheet
• D) Sales budget

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Definitions:

Net Cash Flow

The amount of cash generated or lost over a period, taking into account cash inflows from operations, investments, and financing.

Operating Activities

Transactions and events that relate to the primary operations of the business, such as sales and purchase of goods and services.

Accounts Receivable

Unpaid customer dues to an enterprise for availed services or acquired goods.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions and changes in working capital.