The Usual Starting Point in the Budgeting Process Is a Plan

question 174

Multiple Choice

The usual starting point in the budgeting process is a plan showing the planned sales units and the revenue expected from these sales.This plan is called the:

• A)Operating budget.
• B)Business plan.
• C)Income statement budget.
• D)Merchandise purchases budget.
• E)Sales budget.

---

Definitions:

Par Common Stock

The face value of common shares issued by a company, which is noted on the share certificate.

No-Par Common Stock

Shares of common stock issued without a par value, which means they are not assigned a nominal face value.

Treasury Stock

Shares of a company's own stock that it has reacquired and held in the company's treasury.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically does not have voting rights but has a fixed dividend.