Question 1

Of the following items which one is not obtained from an individual operating budget?

Accepted Answer

A) Selling and administrative expenses 
B) Accounts receivable 
C) Cost of goods sold 
D) Sales 
A) Selling and administrative expenses 
B) Accounts receivable 
C) Cost of goods sold 
D) Sales

Question 2

Which is the last step in developing the master budget?

Accepted Answer

A) Preparing the budgeted balance sheet 
B) Preparing the cost of goods manufactured budget 
C) Preparing the budgeted income statement 
D) Preparing the cash budget 
A) Preparing the budgeted balance sheet 
B) Preparing the cost of goods manufactured budget 
C) Preparing the budgeted income statement 
D) Preparing the cash budget

Question 3

Hyde Corp.'s cash budget showed total available cash less cash disbursements.What does this amount equal?

Accepted Answer

A) Ending cash balance 
B) Total cash receipts 
C) The excess of available cash over cash disbursements 
D) The amount of financing required 
A) Ending cash balance 
B) Total cash receipts 
C) The excess of available cash over cash disbursements 
D) The amount of financing required

Question 4

The total direct labor hours required in preparing a direct labor budget are calculated using the

Accepted Answer

A) sales forecast. 
B) production budget. 
C) direct materials budget. 
D) sales budget. 
A) sales forecast. 
B) production budget. 
C) direct materials budget. 
D) sales budget.

Question 5

Which of the following would not appear as a fixed expense on a selling and administrative expense budget?

Accepted Answer

A) Freight-out 
B) Office salaries 
C) Property taxes 
D) Depreciation 
A) Freight-out 
B) Office salaries 
C) Property taxes 
D) Depreciation

Question 6

Bear Inc.estimates its sales at 200000 units in the first quarter and that sales will increase by 20000 units each quarter over the year.They have and desire a 25% ending inventory of finished goods.Each unit sells for $35.40% of the sales are for cash.70% of the credit customers pay within the quarter.The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at

Accepted Answer

A) 245000. 
B) 230000. 
C) 305000. 
D) 240000. 
A) 245000. 
B) 230000. 
C) 305000. 
D) 240000.

Question 7

Correy Inc.reported the following information for 2022: $\begin{array}{lll}
&\text { October } & \text { November } & \text { December } \
\text { Budgeted sales }&\$ 460,000 & \$ 440,000 & \$ 540,000 \
\text { Budgeted purchases }&\$ 240,000 & \$ 256,000 & \$ 288,000
\end{array}$ All sales are on credit. 
•	Customer amounts on account are collected 50% in the month of sale and 50% in the following month. 
•	Cost of goods sold is 35% of sales. 
•	Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. 
•	Accounts payable is used only for inventory acquisitions.

How much cash will Correy receive during November?

Accepted Answer

A) $220000 
B) $490000 
C) $450000 
D) $440000 
A) $220000 
B) $490000 
C) $450000 
D) $440000

Question 8

The most common budget period is

Accepted Answer

A) one month. 
B) three months. 
C) six months. 
D) one year. 
A) one month. 
B) three months. 
C) six months. 
D) one year.

Question 9

The direct materials and direct labor budgets provide information for preparing the

Accepted Answer

A) sales budget. 
B) production budget. 
C) manufacturing overhead budget. 
D) cash budget. 
A) sales budget. 
B) production budget. 
C) manufacturing overhead budget. 
D) cash budget.

Question 10

Which of the following is not a proper match-up?

Accepted Answer

A) Long range planning ↔ Strategies 
B) Budgeting ↔ Short-term goals 
C) Long-range planning ↔ 5 years 
D) Budgeting ↔ Long-term goals 
A) Long range planning ↔ Strategies 
B) Budgeting ↔ Short-term goals 
C) Long-range planning ↔ 5 years 
D) Budgeting ↔ Long-term goals

Question 11

Which is true of budgets?

Accepted Answer

A) They are voted on and approved by stockholders. 
B) They are used in the planning but not in the control process. 
C) There is a standard form and structure for budgets. 
D) They are used in performance evaluation. 
A) They are voted on and approved by stockholders. 
B) They are used in the planning but not in the control process. 
C) There is a standard form and structure for budgets. 
D) They are used in performance evaluation.

Question 12

A critical factor in budgeting for a service firm is to determine the amount of products to purchase.

Accepted Answer

A) True 
 B)False

Question 13

Budget development for the coming year usually starts

Accepted Answer

A) a year in advance. 
B) the first month of the year to be budgeted. 
C) several months before the end of the current year. 
D) the last month of the previous year. 
A) a year in advance. 
B) the first month of the year to be budgeted. 
C) several months before the end of the current year. 
D) the last month of the previous year.

Question 14

Which one of the following items would never appear on a cash budget?

Accepted Answer

A) Office salaries expense 
B) Interest expense 
C) Depreciation expense 
D) Travel expense 
A) Office salaries expense 
B) Interest expense 
C) Depreciation expense 
D) Travel expense

Question 15

The projection of financial position at the end of the budget period is found on the

Accepted Answer

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

Question 16

At January 1 2022 Deer Corp.has beginning inventory of 2000 surfboards.Deer estimates it will sell 10000 units during the first quarter of 2022 with a 12% increase in sales each quarter.Deer's policy is to maintain an ending inventory equal to 25% of the next quarter's sales.Each surfboard costs $100 and is sold for $150.How much is budgeted sales revenue for the third quarter of 2022?

Accepted Answer

A) $450000 
B) $1950000 
C) $1881600 
D) $12544 
A) $450000 
B) $1950000 
C) $1881600 
D) $12544

Question 17

The manufacturing overhead budget shows the expected manufacturing overhead costs.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following does not appear as a separate section on the cash budget?

Accepted Answer

A) Cash receipts 
B) Cash disbursements 
C) Capital expenditures 
D) Financing 
A) Cash receipts 
B) Cash disbursements 
C) Capital expenditures 
D) Financing

Question 19

Long-range planning usually encompasses a period of at least

Accepted Answer

A) six months. 
B) 1 year. 
C) 5 years. 
D) 10 years. 
A) six months. 
B) 1 year. 
C) 5 years. 
D) 10 years.

Question 20

The budget itself and the administration of the budget are the responsibility of the accounting department.

Accepted Answer

A) True 
 B)False

Of the following items which one is not obtained from an individual operating budget?

Which is the last step in developing the master budget?

Hyde Corp.'s cash budget showed total available cash less cash disbursements.What does this amount equal?

The total direct labor hours required in preparing a direct labor budget are calculated using the

Which of the following would not appear as a fixed expense on a selling and administrative expense budget?

The most common budget period is

The direct materials and direct labor budgets provide information for preparing the

Which of the following is not a proper match-up?

Which is true of budgets?

A critical factor in budgeting for a service firm is to determine the amount of products to purchase.

Budget development for the coming year usually starts

Which one of the following items would never appear on a cash budget?

The projection of financial position at the end of the budget period is found on the

The manufacturing overhead budget shows the expected manufacturing overhead costs.

Which of the following does not appear as a separate section on the cash budget?

Long-range planning usually encompasses a period of at least

The budget itself and the administration of the budget are the responsibility of the accounting department.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 14: Standard Costs and Balanced Scorecard

Of the following items which one is not obtained from an individual operating budget?

Which is the last step in developing the master budget?

Hyde Corp.'s cash budget showed total available cash less cash disbursements.What does this amount equal?

The total direct labor hours required in preparing a direct labor budget are calculated using the

Which of the following would not appear as a fixed expense on a selling and administrative expense budget?

The most common budget period is

The direct materials and direct labor budgets provide information for preparing the

Which of the following is not a proper match-up?

Which is true of budgets?

A critical factor in budgeting for a service firm is to determine the amount of products to purchase.

Budget development for the coming year usually starts

Which one of the following items would never appear on a cash budget?

The projection of financial position at the end of the budget period is found on the

The manufacturing overhead budget shows the expected manufacturing overhead costs.

Which of the following does not appear as a separate section on the cash budget?

Long-range planning usually encompasses a period of at least

The budget itself and the administration of the budget are the responsibility of the accounting department.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters