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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which type of budget is an estimate of the actual money received and paid out for a specific period?

Cash budget

Capital budget

Flexible budget

Production budget

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Verified step by step guidance

Understand the concept of a cash budget: A cash budget is a financial plan that estimates the inflows (money received) and outflows (money paid out) of cash for a specific period. It helps businesses manage liquidity and ensure they have enough cash to meet obligations.

Compare the cash budget to other types of budgets: A capital budget focuses on long-term investments and expenditures, a flexible budget adjusts based on activity levels, and a production budget estimates the costs and resources needed for production. None of these directly estimate cash inflows and outflows.

Identify the purpose of the cash budget: The primary goal is to ensure that the organization can meet its financial obligations, avoid cash shortages, and plan for surplus cash effectively.

Relate the cash budget to the problem: Since the question asks for the type of budget that estimates actual money received and paid out, the cash budget is the correct answer because it directly deals with cash flow management.

Conclude the reasoning: Based on the definitions and purposes of the budgets provided, the cash budget is the most appropriate answer to the question.