FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Introduction to Budgets and Preparing the Master Budget

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

What is the final result of the operating budget process?

A) budgeted balance sheet
B) budgeted income statement
C) budgeted cash flow statement
D) cash budget

Correct Answer

verified

B

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Decisions made during long-range planning include ________.

A) addition or deletion of product line
B) location of new plant
C) purchase of equipment
D) all of the above

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

The financial budget includes ________.

The following sales budget has been prepared: Collections of credit sales are 50% in the month of sale,40% in the month following sale,and 10% two months following sale.No uncollectible accounts are expected.What are the estimated cash collections in November?

Cheating in the context of the budget process does not include making short-run decisions to increase profits that are not in the company's best long-run interests.

Which of the following is NOT a component of the operating budget?

Duck Company has the following information: Purchases are paid as follows: 10% in the month of purchase 50% one month after purchase 40% two months after purchase What is the expected balance in Accounts Payable at March 31?

Silent Company is preparing a cash budget for the month of June.The following information is available: The minimum cash balance desired is $5,000.What is the cash balance on June 30,2010?

The two main components of the master budget are the ________.

Taurus Company has the following data: The gross profit rate is 40% of sales and ending inventory at December 31 was $19,440.Desired ending inventory levels are 30% of next month's sales at cost.What are the expected total purchases for February?

The financial budget process ends with the ________.

The financial budget focuses on the effects that the ________ and other plans will have on ________.

Caravan Company has the following data: The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost.________ was the beginning inventory on May 1.

A cash budget is a business plan that includes a set of schedules and financial statements.

The Happy Company is preparing a budgeted income statement.The dollar amount for Sales comes from ________.

Goldberg Company is preparing a cash budget for the month of June.The following information is available: The minimum cash balance desired is $10,000.What amount of money must be borrowed at June 30,2010 to meet the minimum cash balance?

No matter how many technical experts a company uses in forecasting,the sales budget should ultimately be the responsibility of the ________.

________ models are mathematical models of the master budget that can react to any set of assumptions about sales,costs and product mix.

Managers may ________ their budgeted costs or ________ their budgeted revenues to create a budget target that is easier to achieve.

Budgeting typically uses the future activities of the organization as a starting point for planning.