 In this presentation, we will take a look at multiple choice questions related to budgeting, going through those questions, and then practicing 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 that's okay, whatever. Because our merchandise 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. 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. 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. Three letters is 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 accountinginstruction.com or accountinginstruction.thinkific.com. A plan that lists operating expenses expected that are not including and the selling expenses budget, A overhead budget, B sales budget, C cash payments budget, D cash receipts budget and E general and administrative budget. Let's go through this again using the process of elimination, a plan that lists operating expenses expected that are not included in the selling and administrative expenses budget. Now that's a kind of a strange type of explanation here, but we can see we have operating expenses and operating expenses are usually if we think about like the income statement of a multi-step income statement, we typically think of selling and administrative type expenses as the operating expenses and then they eliminated the selling expenses. So I would, you know, it sounds kind of funny to think about it, but we're talking about operating expenses. So if we go through these, then A says overhead budget. Now we might think, maybe that's selling and admin, but that usually goes into that, to the cost of goods sold actually overhead, but and then B says the sales budget. And we're talking about operating expenses. So I don't think it's going to be B, the sales budget, C says cash payments budget. And we might think, you might have payments in there and D says cash receipts budget. This is expenses again. So we're probably not talking about money coming in that would be kind of income typically. And then E says general and administrative expense budget. So there's an expense, some type of expense budget, and it is an operating expense. So I'll keep that one for now. AC and E, let's go through it again. A plan that lists operating expenses expected that are not included in the selling expenses budget is that the overhead budget, we're talking about operating expenses. This is typically cost of goods sold. So I don't think it's that one. C says cash payments budget versus E saying general and administrative expense budget of the two, ease and expense. So again, note they kind of listed this directly what it is on a multi-step income statement. They're operating expenses, typically consisting of selling and administrative expenses. They then eliminated this selling expenses, which leaves us with the general and admin expenses final answer, a plan that lists operating expenses expected that are not included in the selling expenses budget E, general and administrative expense budget. Next question lists amounts to be received from disposing of plant assets and amounts to be spent on purchasing fixed assets. A, cash budget, B, capital expenses, expenditures budget, C, fixed assets budget, D, property plant and equipment budget and E, production budget. Let's go through this again using the process of elimination lists amounts to be received from disposing of plant assets and amounts to be spent on purchasing fixed assets. A, cash budget, it might deal with cash. So maybe we'll keep that B says capital expenditures budget. That sounds familiar. So I'll keep that now C says fixed assets budget and we have fixed assets up here. So I'll keep that for now. D says property plant and equipment budget, which is up here, plant assets, property plant and equipment. So I'll keep that E says the production budget. So I don't think it's going to be E. I can eliminate that. Now of these three, of these four, these three sound kind of like the same thing. You know, capital expenditures, when we capitalize something fixed assets or something or like a certain type of asset and it's also could be called property plants and equipment. So I'm going to eliminate A and say maybe it's, it sounds like one of these that they just didn't, one of them's got to be the proper wording of it. So let's read through it again. Amounts to be received from disposing of plant assets and amounts to be spent on purchasing fixed assets. So this is the amount that we're spending and receiving for fixed assets or property plant and equipment. You would think that C and D would be reasonable names for it, but that's not what we call it. We call it capital expenditures project, a budget. So it's a budget for capital expenditures. So when you hear capital expenditures in the terms of budgeting, and this term capital is confusing because when you, when you hear it in different contexts, it means different things kind of. So, or, you know, the way it's, the way it's applied could lead us to think that it means, you know, different things in any case. The capital expenditures in this case means that we have the expenditures for things like fixed assets or property plant and equipment. So we're either selling property plants and equipment, receiving money for the sale of those, not inventory, property plant and equipment, stuff that we're using to appreciable type of assets, or we're purchasing property plant and equipment, which is probably more likely to be occurring. We're going to purchase some kind of equipment throughout the time period. So final answer lists amounts to be received from disposing of plant assets and amounts to be spent on purchasing fixed assets be capital expenditures, budget.