While Preparing the Budgeted Balance Sheet of a Merchandiser, the Amount

question 45

Multiple Choice

While preparing the budgeted balance sheet of a merchandiser, the amount of merchandise inventory can be obtained from:

• A)the merchandise inventory account.
• B)the inventory, purchases and cost of goods sold budget.
• C)the production budget
• D)the capital expenditure budget and cash budget.

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Definitions:

Unearned Revenue

Money received by an individual or company for a service or product that has yet to be provided or delivered.

Accounting Equation

The fundamental equation representing the relationship among assets, liabilities, and owner's equity: Assets = Liabilities + Owner’s Equity.

Creditor

An individual or entity that is owed money by another party, often in the context of loaning funds or issuing credit.

Liability

The financial liabilities or obligations a company is legally bound to settle, which emerge in the process of conducting its business activities.