Which Budget Is Based on the Expected Number of Sales

question 188

Multiple Choice

Which budget is based on the expected number of sales?

• A)Flexible budget used for evaluating performance
• B)Operating budget
• C)Output budget
• D)Static budget

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Definitions:

Common Stock Account

An equity account on a company's balance sheet representing the total amount of money invested by common stockholders plus the retained earnings of the company.

Common Stock Dividend

A portion of a company's earnings distributed to common shareholders, typically in the form of cash or additional shares.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment in the business, or to pay debt, rather than being paid out as dividends.

Additional Paid-In Capital

The excess amount paid by investors over the par value of shares, reflecting the additional capital contributed to a corporation.