A Report Based on Predicted Amounts of Revenues and Expenses

question 111

Multiple Choice

A report based on predicted amounts of revenues and expenses corresponding to the actual level of output is called a:

• A) Rolling budget.
• B) Production budget.
• C) Flexible budget.
• D) Merchandise purchases budget.
• E) Fixed budget.

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Definitions:

Interest-Bearing Note

A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.

Adjusting Entry

An accounting record made to adjust income or expenditure in accounts to reflect the accrual basis of accounting properly.