A Planning Budget Based on a Single Predicted Amount of Sales

question 148

Multiple Choice

A planning budget based on a single predicted amount of sales or production volume is called a:

• A) Sales budget.
• B) Standard budget.
• C) Flexible budget.
• D) Fixed budget.
• E) Variable budget.

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Definitions:

Share of the Profits

This term refers to the portion of a company's profits allocated to its shareholders or partners, indicating their financial gain from the business's success.

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Capital Balances

The amount of owners' equity or shareholders' equity in a business, reflecting the residual assets after deducting liabilities.

Share of the Profit

The portion of a company's earnings allocated to each outstanding share of common stock, illustrating the company's profitability on a per share basis.