A Company's Actual Performance Should Be Compared Against Budgeted Amounts

question 4

Multiple Choice

A company's actual performance should be compared against budgeted amounts for the same accounting period so that ________.

• A) adjustments for future conditions can be included
• B) to avoid any feedback from the budgets due to past miscues
• C) inefficiencies of the past year can be included
• D) a rolling budget can be implemented

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Definitions:

Sales Taxes Payable

Liability accounts that record the sales tax collected from customers on behalf of governmental authorities, to be paid in the future.

Cash Sales

Sales transactions where payment is made in cash at the time of purchase, without any delay.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, typically calculated as a percentage of the sales price.