 In this presentation, we'll take a look at multiple choice questions related to budgeting, going through the questions, and then practicing test-taking skills with them. First question, reports costs of merchandise to be purchased, A, merchandise purchases budget, B, inventory budget, C, sales budget, D, cash disbursement budget, E, capital expenditures budget. Let's go through this again using the process of elimination. Reports costs of merchandise to be purchased, A, merchandise purchases budget. Sounds awfully reasonable, I'll keep that one for now. B says the inventory budget, that sounds kind of reasonable, like because we're purchasing stuff, merchandise inventory, so I'll keep that. C says sales budget, and that would be us selling stuff, not purchasing stuff, so I don't think that's it, C or D says.