Which one of the following budgets would be used by all of the following entities: manufacturing firms, merchandise firms, service firms and not-for-profit organizations?
A)production budget
B)merchandise purchase budget
C)cash budget
D)direct material budget

Question

Quizplus · Accepted Answer

All of the entities listed would need to prepare a cash budget to forecast their cash inflows and outflows for a specific period of time. The other budgets listed (production, merchandise purchase, and direct material) are specific to certain types of businesses and may not be applicable to all entities.

Which One of the Following Budgets Would Be Used by All