Working with Numbers in Accounts and Following Them Backward to the Source

question 26

Multiple Choice

Working with numbers in accounts and following them backward to the source document is known as

• A) tracing.
• B) vouching.
• C) rediscovery.
• D) approximation.

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Definitions:

Sales Budget

A detailed forecast of future sales, typically the first step in the budgeting process, driving the company's production, workforce, and financial planning.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including materials and labor.

Selling and Administrative Expenses

The total of all overhead and operational expenses directly tied to the selling and general management of an organization.

Budgeted Purchases

This refers to the estimated amount of goods or services that a business plans to buy over a specific period, as set out in its budget.