Question 1

Beginning cash balance plus total receipts

Accepted Answer

A) equals ending cash balance. 
B) must equal total disbursements. 
C) equals total available cash. 
D) is the excess of available cash over disbursements. 
A) equals ending cash balance. 
B) must equal total disbursements. 
C) equals total available cash. 
D) is the excess of available cash over disbursements.

Question 2

The following information was taken from Southgate Industry's cash budget for the month of July: $$\begin{array} { l r } 
\text { Beginning cash balance } & \$ 480,000 \
\text { Cash receipts } & 304,000 \
\text { Cash disbursements } & 544,000
\end{array}$$ If the company has a policy of maintaining a minimum end of the month cash balance of $400000 the amount the company would have to borrow is

Accepted Answer

A) $160000. 
B) $80000. 
C) $240000. 
D) $96000. 
A) $160000. 
B) $80000. 
C) $240000. 
D) $96000.

Question 3

In a production budget total required production units are the budgeted sales units plus

Accepted Answer

A) beginning finished goods units. 
B) desired ending finished goods units. 
C) desired ending finished goods units plus beginning finished goods units. 
D) desired ending finished goods units minus beginning finished goods units. 
A) beginning finished goods units. 
B) desired ending finished goods units. 
C) desired ending finished goods units plus beginning finished goods units. 
D) desired ending finished goods units minus beginning finished goods units.

Question 4

Doe Manufacturing plans to sell 6000 purple lawn chairs during May 5700 in June and 6000 during July.The company keeps 15% of the next month's sales as ending inventory.How many units should Doe produce during June?

Accepted Answer

A) 5745 
B) 6600 
C) 5655 
D) Not enough information to determine. 
A) 5745 
B) 6600 
C) 5655 
D) Not enough information to determine.

Question 5

Long-range planning

Accepted Answer

A) generally presents more detailed information than an annual budget. 
B) generally encompasses a longer period of time than an annual budget. 
C) is usually more accurate than an annual budget. 
D) is prepared on a quarterly basis if the budget is prepared on a quarterly basis. 
A) generally presents more detailed information than an annual budget. 
B) generally encompasses a longer period of time than an annual budget. 
C) is usually more accurate than an annual budget. 
D) is prepared on a quarterly basis if the budget is prepared on a quarterly basis.

Question 6

The following credit sales are budgeted by Terra Co.: $$\begin{array} { l r } 
\text { January } & \$ 204,000 \
\text { February } & 300,000 \
\text { March } & 420,000 \
\text { April } & 360,000
\end{array}$$ The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale 20% in the month following the sale and 8% in the second month following the sale.The anticipated cash inflow for the month of April is

Accepted Answer

A) $370320. 
B) $336000. 
C) $360000. 
D) $352800. 
A) $370320. 
B) $336000. 
C) $360000. 
D) $352800.

Question 7

During September the capital expenditure budget indicates a $420000 purchase of equipment.The ending September cash balance from operations is budgeted to be $60000.The company wants to maintain a minimum cash balance of $30000.What is the minimum cash loan that must be planned to be borrowed from the bank during September?

Accepted Answer

A) $330000 
B) $360000 
C) $450000 
D) $390000 
A) $330000 
B) $360000 
C) $450000 
D) $390000

Question 8

Bean Manufacturing reported the following information for 2022: $$\text { Budgeted purchases } \quad \frac { \text { October } } { \$ 240,000 } \quad \frac { \text { November } } { \$ 256,000 } \quad \frac { \text { December } } { \$ 288,000 }$$ Operating expenses are: Salaries $100000; Depreciation $40000; Rent $20000; Utilities $28000
•	Operating expenses are paid during the month incurred.
•	Accounts payable is used only for inventory acquisitions.

How much is the budgeted amount of cash to be paid for operating expenses in November?

Accepted Answer

A) $404000 
B) $148000 
C) $188000 
D) $444000 
A) $404000 
B) $148000 
C) $188000 
D) $444000

Question 9

The starting point when budgeting for a not-for-profit organization is generally to budget expenditures first.

Accepted Answer

A) True 
 B)False

Question 10

A master budget consists of

Accepted Answer

A) an interrelated long-term plan and operating budgets. 
B) financial budgets and a long-term plan. 
C) interrelated financial budgets and operating budgets. 
D) all the accounting journals and ledgers used by a company. 
A) an interrelated long-term plan and operating budgets. 
B) financial budgets and a long-term plan. 
C) interrelated financial budgets and operating budgets. 
D) all the accounting journals and ledgers used by a company.

Question 11

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

Accepted Answer

A) Sales commissions 
B) Depreciation 
C) Property taxes 
D) Indirect labor 
A) Sales commissions 
B) Depreciation 
C) Property taxes 
D) Indirect labor

Question 12

The direct materials budget shows: $\begin{array}{ll}
\text { Desired ending direct materials } & 48,000 \text { pounds } \
\text { Total materials required } & 69,000 \text { pounds } \
\text { Direct materials purchases } & 63,200 \text { pounds }
\end{array}$
 The total direct materials needed for production is

Accepted Answer

A) 21000 pounds. 
B) 5800 pounds. 
C) 15200 pounds. 
D) 132200 pounds. 
A) 21000 pounds. 
B) 5800 pounds. 
C) 15200 pounds. 
D) 132200 pounds.

Question 13

The culmination of preparing operating budgets is the

Accepted Answer

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

Question 14

The direct materials budget contains both quantity and cost data.

Accepted Answer

A) True 
 B)False

Question 15

Budgeting and long-range planning are two terms that describe the same process.

Accepted Answer

A) True 
 B)False

Question 16

The following information is taken from the production budget for the first quarter: $\begin{array}{lr}
\text { Beginning inventory in units } & 1,200 \
\text { Sales budgeted for the quarter } & 426,000 \
\text { Capacityin units of production facility } & 472,000
\end{array}$ How many finished goods units should be produced during the quarter if the company desires 3200 units available to start the next quarter?

Accepted Answer

A) 428000 
B) 424000 
C) 474000 
D) 429200 
A) 428000 
B) 424000 
C) 474000 
D) 429200

Question 17

The budgeted balance sheet is prepared entirely from the budgets for the current year.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following sections would not appear on a cash budget?

Accepted Answer

A) Cash receipts 
B) Financing 
C) Investing 
D) Cash disbursements 
A) Cash receipts 
B) Financing 
C) Investing 
D) Cash disbursements

Question 19

A common starting point in the budgeting process is

Accepted Answer

A) expected future net income. 
B) past performance. 
C) to motivate the sales force. 
D) a clean slate with no expectations. 
A) expected future net income. 
B) past performance. 
C) to motivate the sales force. 
D) a clean slate with no expectations.

Question 20

If a company has adopted continuous budgeting the budget will show plans for

Accepted Answer

A) every day. 
B) a full year ahead. 
C) the current year and the next year. 
D) at least five years. 
A) every day. 
B) a full year ahead. 
C) the current year and the next year. 
D) at least five years.

Beginning cash balance plus total receipts

In a production budget total required production units are the budgeted sales units plus

Doe Manufacturing plans to sell 6000 purple lawn chairs during May 5700 in June and 6000 during July.The company keeps 15% of the next month's sales as ending inventory.How many units should Doe produce during June?

Long-range planning

The starting point when budgeting for a not-for-profit organization is generally to budget expenditures first.

A master budget consists of

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

The direct materials budget shows: Desired ending direct materials 48,000 pounds Total materials required 69,000 pounds Direct materials purchases 63,200 pounds The total direct materials needed for production is

The culmination of preparing operating budgets is the

The direct materials budget contains both quantity and cost data.

Budgeting and long-range planning are two terms that describe the same process.

The budgeted balance sheet is prepared entirely from the budgets for the current year.

Which one of the following sections would not appear on a cash budget?

A common starting point in the budgeting process is

If a company has adopted continuous budgeting the budget will show plans for

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

Beginning cash balance plus total receipts

In a production budget total required production units are the budgeted sales units plus

Doe Manufacturing plans to sell 6000 purple lawn chairs during May 5700 in June and 6000 during July.The company keeps 15% of the next month's sales as ending inventory.How many units should Doe produce during June?

Long-range planning

The starting point when budgeting for a not-for-profit organization is generally to budget expenditures first.

A master budget consists of

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

The direct materials budget shows: Desired ending direct materials 48,000 pounds Total materials required 69,000 pounds Direct materials purchases 63,200 pounds The total direct materials needed for production is

The culmination of preparing operating budgets is the

The direct materials budget contains both quantity and cost data.

Budgeting and long-range planning are two terms that describe the same process.

The budgeted balance sheet is prepared entirely from the budgets for the current year.

Which one of the following sections would not appear on a cash budget?

A common starting point in the budgeting process is

If a company has adopted continuous budgeting the budget will show plans for

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