Multiple Choice
Which of the following is NOT a category of audit documentation?
23
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is a type of financial budget?
A
Direct materials budget
B
Production budget
C
Cash budget
D
Sales budget
Verified step by step guidance1
Understand the concept of a financial budget: A financial budget focuses on planning and managing the financial resources of a business, including cash inflows, outflows, and overall financial position.
Differentiate between operational budgets and financial budgets: Operational budgets, such as direct materials, production, and sales budgets, focus on specific aspects of operations, while financial budgets deal with the financial health and cash management of the business.
Recognize the purpose of a cash budget: A cash budget is a type of financial budget that estimates cash inflows and outflows over a specific period to ensure the business has sufficient liquidity to meet its obligations.
Review the options provided: Direct materials budget, production budget, and sales budget are operational budgets, while the cash budget is a financial budget.
Conclude that the correct answer is 'Cash budget,' as it is the only financial budget listed among the options.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations