Which of the Following Items Is Not Needed to Prepare

question 117

Multiple Choice

Which of the following items is not needed to prepare a sales budget by product line?

• A) Expected purchase price of each product.
• B) Expected unit sales of each product.
• C) Expected selling price of each product.
• D) All of the answers are correct.

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Definitions:

Prepaid Expenses

Payments made for goods or services to be received in the future, recognized as assets on a balance sheet until they are incurred as expenses.

Inventory

The quantity of goods and materials a business holds for the purpose of resale or production.

Short-Term Assets

Assets expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Pro Forma Assets

Projected assets of a business, listed in a financial statement prepared in anticipation of future events or transactions.