For a Manufacturing Entity, If

question 63

Multiple Choice

For a manufacturing entity, if:
1 is the budgeted balance sheet
2 is the budgeted income statement
3 is the production budget
4 is the sales budget
5 is the cash budget
6 is the cost of sales budget;
Then the normal sequence of budget preparation is:

• A) 4, 5, 6, 2, 3, 1.
• B) 4, 3, 6, 2, 5, 1.
• C) 4, 6, 2, 3, 5, 1.
• D) 5, 2, 4, 6, 3, 1.

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Definitions:

Expressly State

To explicitly specify or declare something in a clear and unequivocal manner.

Agency by Operation of Law

A legal principle that creates an agency relationship due to circumstances or law rather than an agreement between the agent and principal.

Charges

Fees or financial obligations imposed by an entity for services rendered or as penalties for non-compliance with laws or regulations.

Account

A record summarizing the financial transactions pertaining to a specific period or purpose, such as savings or checking in a bank.