nttpsrhewconnect.mheducation.com/low/connecthtm ensive Final 6 Saved Help Select
ID: 2398829 • Letter: N
Question
nttpsrhewconnect.mheducation.com/low/connecthtm ensive Final 6 Saved Help Select the term from the list of terms that best matches the description provided. Your Answer Definition or Description Term 1. Cash budget 2. Inventory purchases A. This shows the inventory needs for each month. B. This shows the projected financial condition of the company at the end of the budget period. C. Comparison of actual results to budget expectations in order to evaluate employee and/or department performance budget 3. Performance measurement D. Expected borrowing (financing activities) 4, Pro forma balance and related interest expense are shown in this budget. E. This budget is the starting point for the5. Pro forma financial entire master budget F. These are based on projected rather than 6. Pro forma income historical information G. This provides an advance estimate of the expected profitability statements statement 7. Sales budget Essav Toolbar navicat This question will be sent to your instructor for gradingExplanation / Answer
The answers are:
Explanation:
Inventory purchase budget shows the amount of inventory that will have to be purchased each month to satisfy production needs.
Pro forma balance sheet are projected based on certain assumptions and shows the financial condition as a result of those conditions.
Performance measurement compares the actual amounts to budgeted figures to determine the performance levels.
Cash budget includes receipts, payments, borrowings to meet the shortfalls, etc.
Sales budget is the first budget that is prepared when preparing a master budget.
Pro forma financial statements are never based on historical figures. All financial figures are projected based on certain assumptions.
Pro forma income statement is also based on assumptions and provides an estimate of future profitability.
Definition Matched term A 2 B 4 C 3 D 1 E 7 F 5 G 6Related Questions
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