 in this presentation we will take a look at multiple choice questions related to budgeting we'll go over the questions then we'll practice test taking skills with them first question first a word from our sponsor yeah actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but but that's okay whatever because our merchandise is is better than their stupid stuff anyways like our cpa six pack shirts a must have for any pool or beach time mixing money with muscle always sure to attract attention yeah even if you're not a cpa you need this shirt so you can like pull in that iconic cpa six pack stomach muscle vibe man you know that cpa six pack everyone envisions in their mind when they think cpa you know as a cpa i actually and unusually don't have tremendous abs however i was blessed with a whole lot of belly hair yeah allowing me to sculpt the hair into a nice cpa six pack like shape which is highly attractive yeah maybe the shirt will help you generate some belly hair too and if it does make sure to let me know maybe i'll try wearing it on my head and yes i know six pack isn't spelled right but three letters it's more efficient than four so i trimmed it down a bit okay it's an improvement if you would like a commercial free experience consider subscribing to our website at accounting instruction dot com or accounting instruction dot think of it dot com formal statement for future plans expressed in monetary terms a projection b analysis report c what if report d budget e variance analysis we'll go through this again and then use the process of elimination formal statement of future plans expressed in monetary terms a projection that sounds like a reasonable term i'll keep that for now b analysis report and it sounds kind of reasonable i guess i'll keep that for now c says what if report that seems like a fairly strange named report possibly not a very formal report i'm going to cross that out d says budget that of course is what we're concentrating on here so we would think that that could very well be an answer e says variance analysis and that sounds familiar but it's not exactly what we're looking at here that might be something we kind of do with a budget but i don't think that's going to be applicable we'll keep a b and d let's go through this again formal statement of future plans expressed in monetary terms is either a projection b analysis report d a budget and of those three we would think we would have d here considering we're on the budgetary area now if you have a larger type of test and you're not focusing just on the budgets of course then it may be a little bit more difficult for us to go through this and note also that if you see something like a projection you might pick that and say hey that sounds correct and you could argue the case that possibly a projection is correct in some ways but it's not the most correct answer so remember that you're probably not going to win an argument like that uh even if you were to contest it so you want to go with the best answer and the best answer here is the budget final answer formal statement of future plans expressed in monetary terms d budget next item next question planning future business actions expressing them as a formal plan a projecting b future reporting c what if analysis d variance analysis and e budgeting let's go through that again using the process of elimination planning future business actions are expressing them as a formal plan is either a projecting again that sounds kind of reasonable i'll keep it for now b future reporting probably what we're doing but i don't know i'll keep it for now c says what if analysis once again that sounds a little kind of strange not very formal i don't think it's going to be that d says variance analysis once again uh that sounds familiar and we might do variants like differences which would be the actual versus what happened but not the item here so e says budgeting which again sounds kind of like what we're doing here so i'm going to keep e so we're left with a b and e let's go through it again planning future business actions expressing them as a formal plan is either a projecting b future reporting or e budgeting and of those three once again we're on the budgeting area so we would think it would be the budgeting item again you could argue either a or b and say hey that's kind of what we're doing we can call it that if we want but you probably want the formal answer here which would be the budgeting so once again final answer planning future business actions expressing them as a formal plan is e budgeting