Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Introduction to Adjusting Journal Entries and Prepaid Expenses

Financial Accounting

3. Accrual Accounting Concepts

Introduction to Adjusting Journal Entries and Prepaid Expenses

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Multiple Choice

In a manufacturing company, which budget is typically prepared immediately after the sales budget?

Direct materials budget

Cash budget

Selling and administrative expenses budget

Production budget

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Verified step by step guidance

Understand the sequence of budgets in a manufacturing company: The sales budget is typically the starting point, as it forecasts the expected sales volume and revenue.

Recognize that the production budget is prepared immediately after the sales budget. This is because the production budget determines the number of units that need to be produced to meet sales demand and maintain inventory levels.

Learn the components of the production budget: It includes calculations for required production units based on expected sales, beginning inventory, and desired ending inventory.

Understand why other budgets, such as the direct materials budget, cash budget, and selling and administrative expenses budget, are prepared later. These budgets depend on the production budget to estimate material needs, cash flows, and operational expenses.

Review the logical flow: Sales budget → Production budget → Direct materials budget → Cash budget → Selling and administrative expenses budget. This sequence ensures that all operational and financial planning aligns with the sales forecast.