Which of the following statements is false? For merchandising companies with different items in stock for sale, only one purchase budget would be prepared. a. O b. The interest expense in the budgeted income statement comes from the cash budget. O c. If a company produces and sells customized goods only by order, it may not have any desired ending finished goods inventory when preparing its budgets. d. We should prepare sales budget before we prepare the production budget. е. None of the given answers.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following statements is false?
For merchandising companies with different items in stock for sale, only one purchase budget
would be prepared.
О а.
O b. The interest expense in the budgeted income statement comes from the cash budget.
If a company produces and sells customized goods only by order, it may not have any desired
О с.
ending finished goods inventory when preparing its budgets.
O d. We should prepare sales budget before we prepare the production budget.
O e.
None of the given answers.
Transcribed Image Text:Which of the following statements is false? For merchandising companies with different items in stock for sale, only one purchase budget would be prepared. О а. O b. The interest expense in the budgeted income statement comes from the cash budget. If a company produces and sells customized goods only by order, it may not have any desired О с. ending finished goods inventory when preparing its budgets. O d. We should prepare sales budget before we prepare the production budget. O e. None of the given answers.
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