Cash budget. Mary Jacobs, the controller of the Jenks Company is working on Jenks’ cash budget for year 2. She has information on each of the following items: Wages due to workers accrued as of December 31, year 1. Limits on a line of credit that may be used to fund Jenks’ operations in year 2. The balance in accounts payable as of December 31, year 1, from credit purchases made in year 1. Which of the items above should Jacobs take into account when building the cash budget for year 2? A. I, II , B. I, III, C. II, III, D, I, II, III
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
- Wages due to workers accrued as of December 31, year 1.
- Limits on a line of credit that may be used to fund Jenks’ operations in year 2.
- The balance in accounts payable as of December 31, year 1, from credit purchases made in year 1.
- Which of the items above should Jacobs take into account when building the cash budget for year 2? A. I, II , B. I, III, C. II, III, D, I, II, III
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