Which of the Following Would Not Be Used in Preparing

question 155

Multiple Choice

Which of the following would not be used in preparing a cash budget for October?

• A) Beginning cash balance on October 1.
• B) Budgeted salaries expense for October.
• C) Estimated depreciation expense for October.
• D) Budgeted sales and collections for October.

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Definitions:

Merchandise

Goods bought for the purpose of resale at a profit.

Accounting Equation

The fundamental equation that represents the relationship among assets, liabilities, and equity of a company; Assets = Liabilities + Equity.

Income from Operations

Profit generated from a company’s regular business activities, excluding non-operating income and expenses.

Fiscal Year

A one-year period used for financial reporting and budgeting, not necessarily aligning with the calendar year.