The First and Last Steps Respectively in the Development of a Master

question 30

Multiple Choice

The first and last steps respectively in the development of a master budget are:

• A) forecasting sales and estimating expenses.
• B) identifying goals and preparation of the cash budget.
• C) identifying goals and preparation of a set of budgeted financial statements.
• D) preparation of the sales budget and preparation of the capital expenditure budget.

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Definitions:

Subsidy Benefit

Financial assistance granted by the government or a public body to support businesses, industries, or individuals, leading to lower costs or more favorable conditions.

Marginal Tax Rate

The rate at which the last dollar of taxpayers' income is taxed, indicating how much tax will be paid on an additional dollar of income.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity for a given period.

Taxable Income

Taxable income is the amount of income subject to tax, after all deductions and exemptions have been accounted for.