Select the Term from the List of Terms That Best

Select the term from the list of terms that best matches the description provided. $$\begin{array} { | l | l | l | } \hline \text { Your Answer } & \text { Definition or Description } & \text { Term } \\\hline & \text { A. This shows the inventory needs for each month. } & \text { 1. Cash budget } \\\hline & \begin{array} { l } \text { B. This shows the projected financial condition of the } \\\text { company at the end of the budget period. }\end{array} & \begin{array} { l } \text { 2. Inventory purchases } \\\text { budget }\end{array} \\\hline & \begin{array} { l } \text { C. Comparison of actual results to budget } \\\text { expectations in order to evaluate employee and/or } \\\text { department performance. }\end{array} & \begin{array} { l } \text { 3. Performance } \\\text { measurement }\end{array} \\\hline & \begin{array} { l } \text { D. Expected borrowing (financing activities) and } \\\text { related interest expense are shown in this budget. }\end{array} & \begin{array} { l } \text { 4. Pro forma balance } \\\text { sheet }\end{array} \\\hline & \begin{array} { l } \text { E. This budget is the starting point for the entire } \\\text { master budget. }\end{array} & \begin{array} { l } \text { 5. Pro forma financial } \\\text { statements }\end{array} \\\hline & \begin{array} { l } \text { F. These are based on projected rather than historical } \\\text { information. }\end{array} & \begin{array} { l } \text { 6. Pro forma income } \\\text { statement }\end{array} \\\hline & \begin{array} { l } \text { G. This provides an advance estimate of the expected } \\\text { profitability. }\end{array} & \text { 7. Sales budget } \\\hline\end{array}$$