In a Master Budget,a Capital Budget Is Used to Prepare

question 127

Multiple Choice

In a master budget,a capital budget is used to prepare the ________.

• A) sales budget
• B) budgeted income statement
• C) purchases and cost of goods sold budget
• D) cash budget

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of financial recordings.

Journal Entries

Records of financial transactions entered into an accounting system, ensuring that the debits equal the credits in financial accounting records.

Cash

Liquid assets held by an individual or company, which include currency and demand deposits readily available for transactions.

Debits Than Credits

Debits than credits refers to a situation where the total debits in an account or transaction exceed the total credits, impacting the balance.