Which of the Following Is True of the Sales Budget

question 56

Multiple Choice

Which of the following is true of the sales budget?

• A) It provides sales data that is used to prepare financial statements for external reporting purposes.
• B) It captures the variable and fixed expenses of the business.
• C) It is used in the production budget.
• D) It shows the cost of expected production in a period.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation.

Partnership

An association of two or more persons to carry on a business for profit.

Corporation

A legal entity recognized by law, distinct from its owners, with rights to own property, sue, and be sued.

De Jure Corporation

A corporation that is legally incorporated and recognized by the state as existing in accordance with law.