A Plan That Lists Dollar Amounts to Be Received from Disposing

question 45

Multiple Choice

A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

• A) Cash budget.
• B) Capital expenditures budget.
• C) Rolling budget.
• D) Sales budget.
• E) Production budget.

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Definitions:

Fees Earned

Revenue from providing services.

Purchases Journal

The purchases journal is a specialized accounting ledger that tracks all purchase transactions of a business, including inventory purchases on credit.

Supplies Account

An account in the general ledger that records the amount spent on supplies that are used in the operation of a business.

General Journal

A ledger where all financial transactions of a business are initially recorded using double-entry bookkeeping.