Which of the Following Is $\textbf{ not }$

question 101

Multiple Choice

Which of the following is $\textbf{ not }$ a step in preparing the direct materials purchases budget?

• A)Enter the budgeted sales from the sales budget.
• B)Calculate the direct materials production needs by multiplying the number of units to be produced by the direct materials standard quantity for one unit.
• C)Calculate the total direct materials required for the period by adding the ending inventory to the direct materials production needs.
• D)All of these ans choices are steps in preparing the direct materials purchases budget.

---

Definitions:

§1231 Gain

A type of gain that arises from the sale of property used in a trade or business, which is subject to favorable capital gains tax rates if held for more than one year.

Self-Employment Income

Income generated by an individual directly from one's own business, trade, or profession, rather than from an employer.

Partnership Basis

The amount of a partner's investment in a partnership for tax purposes, affecting how they report income, gains, and losses.

Guaranteed Payment

Payments made to partners in a partnership regardless of the partnership's income, ensuring the partner receives a steady income.