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 71

True/False

Review LaterAdd Note

Review Later

A budget is an example of an informal business plan.

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

A spreadsheet can be used to prepare ________.

A) the operating budget
B) the financial budget
C) schedules from the master budget
D) all of the above

Correct Answer

verified

Show Answer

Question 73

True/False

Review LaterAdd Note

Depreciation expense is usually a disbursement listed on the cash budget.

Line operating managers usually prepare and use the operating budget.

A major benefit of effective budgeting is that ________.

Jensen Company is preparing a cash budget for the month of June.The following information is available: $\begin{array}{ll}\text { Cash Balance, May 31, } 2015 & \$ 10,000 \\\text { Cash collections from customers in June } & 76,000 \\\text { Cash paid for merchandise in June } & 42,000 \\\text { Paid operating expenses in June } & 17,000 \\\text { Purchase furniture for cash in June } & 5,000 \\\text { Depreciation expense in June } & 2,000 \\\text { Amortization expense in June } & 3,000\end{array}$ The minimum cash balance desired is $10,000.What are the net cash receipts and disbursements for the month of June?

Which budget guides day-to-day operations in a business?

What item is NOT a line item on the purchases and cost of goods sold budget?

The beginning available cash balance equals the beginning cash balance plus the minimum cash balance desired.

A decision made during long-range planning includes whether to delete a product from a company's product line.

Paulson Company's expected sales for April are $29,000.Other information follows: $\begin{array}{ll}\text { Budgeted Operating Expenses }&\text { Amount }\\\text { Wages } & \$ 4,000 \\\text { Advertising } & 1,680 \\\text { Depreciation } & 1,440 \\\text { Rent } & 2,560 \\\text { Promotion } & 5 \% \text { of sales }\end{array}$ What are the total expected operating expenses for April?

Activity-based budgets are an example of functional budgeting.

Participative budgeting is the active participation of all affected employees in the formulation of the budget.

Hoover Company expects June sales to be $30,000.Of these sales,credit sales are expected to be $12,000.Collection of credit sales are 50% in the month of sale,40% in the month following sale and 5% two months following sale.The remaining 5% is uncollectible.________ is the expected cash collection in June from June sales.

When preparing the budgeted income statement,which of the following is the source for the amount of sales?

Which of the following statements is FALSE about a strategic plan?

In a master budget,a capital budget is used to prepare the ________.

A budget is a qualitative expression of a plan of action.

The first step in preparing the master budget is the preparation of the budgeted income statement.

A major drawback of using historical results for judging current performance is that inefficiencies may be concealed in past performance.