 In this presentation, we will take a look at multiple choice questions related to budgeting, going through the questions, and then practicing test-taking skills with them. First question, budgeting process usually ends with A, budgeted financial statements, B, sales budget, C, production budget, D, cash budget, E, and argument. Let's go through this again using the process of elimination. Budgeting process usually ends with, now whenever you see a question like this and you will see them when you're dealing with budgets, because we have to make the budgets in some kind of sequential order. If we just try to dive into some component of the master budget without thinking about it in a process type fashion, it'll be a mess. So we got to do it in order, and so we're visualizing the order. So we're looking at the end of the order. What's the last thing that's going to happen with this budgeting process? A, the budgeted financial statements. That sounds pretty reasonable because after you go through this whole thing, you're going to have a balance sheet and income statement you would think that would be budgeted, which you think the balance sheet and income statement will be. So I'll keep that for now. A, B says the sales budget. Now the sales budget's got to be one of the first things we do, because we can't do much else until we figure out how many units we're going to sell, because we can't budget too many other things until you know that. So I would think that would be somewhere towards the beginning of the process. C says the production budget. And the production budget, you're going to need that somewhere up there, somewhere towards the upper, middle, and type of area, because you need the production budget to know how much you're going to spend. You need to know how much for your cash flow budget and whatnot. So I don't think that's it. D says the cash budget, and that's towards the end. So maybe we'll keep that for now because we got to do all the other stuff before a lot of times we can do the cash budget. And then E says an argument. Now the arguments hopefully happen during the budgeting process. And by the end of the budgeting process, you have squashed or reconciled or at least moved on from all arguments, you would hope. So we're not going to be E. We're going to be left with A and D. Going through this again. Budgeting process usually ends with A, budgeted financial statements or D, cash budget. Now of those two, you would think that the financial statements I would think would be after the cash budget. The cash budget would be towards the end because you would need to know other things to get to the cash budgets, the flow of the cash. But the financial statements are typically what we would consider the end result. When you think of a budget, we're usually thinking about the income statement a lot of times. We're trying to get that income statement into the future, the timing accounts, the performance accounts. But we also will have where we will be at the end of that time period, at the end of that year, and that will be the balance sheet. So I'm going to go with A, final answer. Budgeting process usually ends with A, budgeted financial statements.