The Total Revenue of the Month of June Amounted to $7,500;

question 74

Multiple Choice

The total revenue of the month of June amounted to $7,500; total expenses amounted to $3,500; and withdrawals amounted to $600.The net income for the month amounted to

• A) $7,500.
• B) $3,400.
• C) $4,000.
• D) $3,500.

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Definitions:

Budgeting

The process of creating a plan to spend your money, outlining future financial goals and how resources will be allocated to achieve them.

Lower Levels of Management

This refers to the operational level or first-line managers who directly manage non-management employees, focusing on daily operations and tasks.

Production Budget

An estimate of the total cost of production for a particular period, considering factors like raw materials, labor, and overhead expenses.

Merchandise Purchases Budget

A financial plan outlining the projected purchases of inventory needed to meet expected sales demand.