Answer the Following Question(s)using the Information Below

question 41

Multiple Choice

Answer the following question(s) using the information below.Furniture Inc.estimates the following number of mattress sales for the first four months of 2019:
Finished goods inventory at the end of December 2018 is 1,500 units.Target ending finished goods inventory is 30% of the next month's sales.
-The budgeting process generally concludes with the preparation of the

• A)cash budget.
• B)selling expense budget.
• C)budgeted financial statements.
• D)research and development budget.
• E)production budget.

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Definitions:

GAAP Methods

GAAP methods refer to accounting principles and guidelines set by the Financial Accounting Standards Board in the United States for preparing financial statements.

MACRS

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation used in the United States for tax purposes, allowing for quicker cost recovery of property and equipment.

Useful Life

The estimated time period that an asset is expected to be used by a business or be productive.

Straight-Line Rate

A method of calculating the depreciation of an asset, which allocates an equal depreciation expense each year over the asset's useful life.