Question

Merchandising companies prepare which of the following​ budgets?

a. operating expense
b. cash
c. sales
d. all of the above

Answer 1

Merchandising companies prepare an operating expense budget, a cash budget, and a sales budget for effective financial planning, thus the correct answer is (d) all of the above.

Step-by-step explanation:

Merchandising companies prepare a variety of budgets to manage their financial activities effectively. Among these budgets are the operating expense budget, cash budget, and sales budget. These companies must have a detailed financial plan to track expenses, forecast and monitor cash flows, and anticipate sales levels.

These budgets serve different purposes:

The operating expense budget outlines the projected general and administrative costs.The cash budget provides an estimate of the cash inflows and outflows over a specific period.The sales budget is the foundation for other budgets and forecasts the expected sales revenue.