Question 1

Match each phrase that follows with the term a-f) it describes..
-plans an important role for organizations in planning, directing, and controlling a company's future goals

Accepted Answer

A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet 
A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet

Question 2

The budgeted volume of production is based on the sum of 1) the expected sales volume and 2) the desired ending inventory, less 3) the estimated beginning inventory.

Accepted Answer

A) True 
 B)False

Question 3

The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as

Accepted Answer

A)  flexible budgeting 
B)  continuous budgeting 
C)  zero-based budgeting 
D)  master budgeting 
A)  flexible budgeting 
B)  continuous budgeting 
C)  zero-based budgeting 
D)  master budgeting

Question 4

Flexible budgeting requires all levels of management to start from zero and estimate sales, production, and other operating data as though operations were being started for the first time.

Accepted Answer

A) True 
 B)False

Question 5

What is a capital expenditures budget?

Accepted Answer

The capital expenditures budge

Question 6

A process whereby the effect of fluctuations in the level of activity is built into the budgeting system is referred to as flexible budgeting.

Accepted Answer

A) True 
 B)False

Question 7

Gilbert's expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Payments of manufacturing costs are as follows: 25% in the month of production and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending balance on September 30 would be

Accepted Answer

A)  $61,500 
B)  $75,000 
C)  $72,300 
D)  $71,500 
A)  $61,500 
B)  $75,000 
C)  $72,300 
D)  $71,500

Question 8

Total budgeted sales of both products for the year would be

Accepted Answer

A)  $42,000 
B)  $200,000 
C)  $264,000 
D)  $464,000 
A)  $42,000 
B)  $200,000 
C)  $264,000 
D)  $464,000

Question 9

Which of the following would not be used in preparing a cash budget for October?

Accepted Answer

A)  beginning cash balance on October 1 
B)  budgeted salaries expense for October 
C)  estimated depreciation expense for October 
D)  budgeted sales and collections for October 
A)  beginning cash balance on October 1 
B)  budgeted salaries expense for October 
C)  estimated depreciation expense for October 
D)  budgeted sales and collections for October

Question 10

Consulting the persons affected by a budget when it is prepared can provide an effective means of motivation and cooperation.

Accepted Answer

A) True 
 B)False

Question 11

Part of the cash budget is based on information drawn from the capital expenditures budget.

Accepted Answer

A) True 
 B)False

Question 12

Production and sales estimates for June are as follows:   The number of units expected to be manufactured in June is

Accepted Answer

A)  11,000 
B)  12,500 
C)  15,500 
D)  13,500 
A)  11,000 
B)  12,500 
C)  15,500 
D)  13,500

Question 13

The sales budget is the starting point for preparation of the direct labor cost budget.

Accepted Answer

A) True 
 B)False

Question 14

The budgeted direct materials purchases is normally computed as the sum of 1) the materials for production and 2) the desired ending inventory.

Accepted Answer

A) True 
 B)False

Question 15

Match each phrase that follows with the term a-f) it describes..
-an accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period

Accepted Answer

A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet 
A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet

Question 16

The first budget to be prepared is usually the cash budget.

Accepted Answer

A) True 
 B)False

Question 17

A company is preparing its cash budget. Its cash balance on January 1 is $290,000 and it has a minimum cash requirement of $340,000. The following data has been provided:  
-What is the amount of cash excess or deficiency after considering the minimum cash balance required) for March?

Accepted Answer

A)  excess of $214,200 
B)  excess of $15,800 
C)  deficiency of $60,000 
D)  excess of $25,300 
A)  excess of $214,200 
B)  excess of $15,800 
C)  deficiency of $60,000 
D)  excess of $25,300

Question 18

If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 198,000 units.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following budgets allow for adjustments in activity levels?

Accepted Answer

A)  static budget 
B)  continuous budget 
C)  zero-based budget 
D)  flexible budget 
A)  static budget 
B)  continuous budget 
C)  zero-based budget 
D)  flexible budget

Question 20

A series of budgets for varying rates of activity is termed an)

Accepted Answer

A)  flexible budget 
B)  variable budget 
C)  master budget 
D)  activity budget 
A)  flexible budget 
B)  variable budget 
C)  master budget 
D)  activity budget

Exam 21: Budgeting

Match each phrase that follows with the term a-f) it describes.. -plans an important role for organizations in planning, directing, and controlling a company's future goals

The budgeted volume of production is based on the sum of 1) the expected sales volume and 2) the desired ending inventory, less 3) the estimated beginning inventory.

The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as

Flexible budgeting requires all levels of management to start from zero and estimate sales, production, and other operating data as though operations were being started for the first time.

What is a capital expenditures budget?

A process whereby the effect of fluctuations in the level of activity is built into the budgeting system is referred to as flexible budgeting.

Total budgeted sales of both products for the year would be

Which of the following would not be used in preparing a cash budget for October?

Consulting the persons affected by a budget when it is prepared can provide an effective means of motivation and cooperation.

Part of the cash budget is based on information drawn from the capital expenditures budget.

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

The sales budget is the starting point for preparation of the direct labor cost budget.

The budgeted direct materials purchases is normally computed as the sum of 1) the materials for production and 2) the desired ending inventory.

Match each phrase that follows with the term a-f) it describes.. -an accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period

The first budget to be prepared is usually the cash budget.

A company is preparing its cash budget. Its cash balance on January 1 is $290,000 and it has a minimum cash requirement of $340,000. The following data has been provided: -What is the amount of cash excess or deficiency after considering the minimum cash balance required) for March?

If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 198,000 units.

Which of the following budgets allow for adjustments in activity levels?

A series of budgets for varying rates of activity is termed an)

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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