When a Business Needs a More Sophisticated Balance Sheet Than

question 43

Multiple Choice

When a business needs a more sophisticated balance sheet than the one created for its first accounting records,it creates a _____ balance sheet to list assets and liabilities in separate categories.

• A)classified
• B)two-item
• C)long-term
• D)extended

---

Definitions:

Master Budget

An inclusive financial planning document that consolidates all individual budgets related to sales, cost of goods sold, operating expenses, assets, liabilities, and cash flows.

Product

Anything that can be offered to a market to satisfy the want or need of a customer.

Cash Budget

A financial plan that forecasts the cash inflows and outflows over a specific period, typically used to assess liquidity and manage cash effectively.

Budgeted Disbursements

Projected payments planned by a company for various expenses.