Solved

Match the Definitions 1 Through 9 with the Term or Phrase

Question 162

Matching

Match the definitions 1 through 9 with the term or phrase (a)through (i).

Premises:
A quantity of inventory or materials over the minimum to reduce the risk of running short.
A plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.
An accounting report that presents predicted amounts of the company's revenues and expenses for the budgeting period.
A formal statement of a company's future plans, usually expressed in monetary terms.
An accounting report that presents predicted amounts of the company's assets, liabilities, and equity balances at the end of the budget period.
A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from any loans needed to maintain a minimum cash balance and repayments of such loans.
A comprehensive business plan that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expenses to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet.
A plan showing the units of goods to be sold and the sales to be derived; the usual starting point in the budgeting process.
A plan that shows predicted operating expenses not included in the selling expenses budget.
Responses:
Sales budget
Cash budget
Merchandise purchases budget
Safety stock
Budget
Budgeted income statement
Budgeted balance sheet
Master budget
General and administrative expense budget

Correct Answer:

A quantity of inventory or materials over the minimum to reduce the risk of running short.
A plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.
An accounting report that presents predicted amounts of the company's revenues and expenses for the budgeting period.
A formal statement of a company's future plans, usually expressed in monetary terms.
An accounting report that presents predicted amounts of the company's assets, liabilities, and equity balances at the end of the budget period.
A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from any loans needed to maintain a minimum cash balance and repayments of such loans.
A comprehensive business plan that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expenses to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet.
A plan showing the units of goods to be sold and the sales to be derived; the usual starting point in the budgeting process.
A plan that shows predicted operating expenses not included in the selling expenses budget.
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