Question 1

In a budget of cash receipts for March,the total cash receipts would be:

Accepted Answer

A)  $8,200. 
B)  $16,000. 
C)  $17,800. 
D)  $20,200. 
A)  $8,200. 
B)  $16,000. 
C)  $17,800. 
D)  $20,200. C

Question 2

Orion Corporation is preparing a cash budget for the six months beginning January 1.Shown below are the company's expected collection pattern and the budgeted sales for the period. Expected collection pattern:
65% collected in the month of sale
20% collected in the month after sale
10% collected in the second month after sale
4% collected in the third month after sale
1% uncollectible   The estimated total cash collections during April from sales and accounts receivables will be:

Accepted Answer

A)  $155,900. 
B)  $167,000. 
C)  $171,666. 
D)  $173,400. 
A)  $155,900. 
B)  $167,000. 
C)  $171,666. 
D)  $173,400. D

Question 3

Which of the following is not a benefit of budgeting?

Accepted Answer

A)  It uncovers potential bottlenecks before they occur. 
B)  It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts. 
C)  It ensures that accounting records comply with generally accepted accounting principles. 
D)  It provides benchmarks for evaluating subsequent performance. 
A)  It uncovers potential bottlenecks before they occur. 
B)  It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts. 
C)  It ensures that accounting records comply with generally accepted accounting principles. 
D)  It provides benchmarks for evaluating subsequent performance. C

Question 4

A sales budget is given below for one of the products manufactured by the OMI Co.:

Accepted Answer

@#IMG-DLM& 
The inventory of finished goods at the

Question 5

On a budgeted balance sheet,the retained earnings number is the net income number as projected by the budgeted income statement.

Accepted Answer

A) True 
 B)False

Question 6

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following BEST describes the production budget?

Accepted Answer

A)  It details the required direct labour hours. 
B)  It details the required raw materials purchases. 
C)  It is calculated based on the sales budget,the desired beginning inventory and the desired ending inventory. 
D)  It summarizes the costs of producing required units for the budget period. 
A)  It details the required direct labour hours. 
B)  It details the required raw materials purchases. 
C)  It is calculated based on the sales budget,the desired beginning inventory and the desired ending inventory. 
D)  It summarizes the costs of producing required units for the budget period.

Question 7

Determine what the cash collection for October will be.

Accepted Answer

The answer of Determine what the cash collection for October...

Question 8

If Pardise Company plans to sell 480,000 units during July,the number of units it would have to manufacture during July would be:

Accepted Answer

A)  440,000. 
B)  450,000. 
C)  480,000. 
D)  510,000. 
A)  440,000. 
B)  450,000. 
C)  480,000. 
D)  510,000.

Question 9

A production budget is to a manufacturing firm as a merchandise purchases budget is to a merchandising firm.

Accepted Answer

A) True 
 B)False

Question 10

If 500,000 finished units were to be manufactured during July,the units of raw material needed to be purchased would be:

Accepted Answer

A)  990,000. 
B)  1,000,000. 
C)  1,010,000. 
D)  1,020,000. 
A)  990,000. 
B)  1,000,000. 
C)  1,010,000. 
D)  1,020,000.

Question 11

In a traditional incremental approach to budgeting,there is usually the assumption that the previous year's budget is used as a starting point.

Accepted Answer

A) True 
 B)False

Question 12

Superior Industries' sales budget shows quarterly sales for the next year as follows:   Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales.Budgeted production in units for the second quarter should be:

Accepted Answer

A)  7,200. 
B)  8,000. 
C)  8,400. 
D)  8,800. 
A)  7,200. 
B)  8,000. 
C)  8,400. 
D)  8,800.

Question 13

The repayment (including interest)of financing during the second quarter (item d in thousands)is:

Accepted Answer

A)  $0. 
B)  $4. 
C)  $7. 
D)  $17. 
A)  $0. 
B)  $4. 
C)  $7. 
D)  $17.

Question 14

The budgeted net income for December is:

Accepted Answer

A)  $42,500. 
B)  $77,500. 
C)  $107,500. 
D)  $137,500. 
A)  $42,500. 
B)  $77,500. 
C)  $107,500. 
D)  $137,500.

Question 15

Which of the following statements is true about zero-based budgeting?

Accepted Answer

A)  The process starts with last year's budget and changes anticipated are added or subtracted to get the current budget. 
B)  Managers are required to justify all budgeted expenditures. 
C)  Budgets have no financial components - are specified in product units only. 
D)  Managers are required to use the prior year's budget without changes for the current year. 
A)  The process starts with last year's budget and changes anticipated are added or subtracted to get the current budget. 
B)  Managers are required to justify all budgeted expenditures. 
C)  Budgets have no financial components - are specified in product units only. 
D)  Managers are required to use the prior year's budget without changes for the current year.

Question 16

The collections from customers during the first quarter (item a in thousands)are:

Accepted Answer

A)  $50. 
B)  $57. 
C)  $60. 
D)  $73. 
A)  $50. 
B)  $57. 
C)  $60. 
D)  $73.

Question 17

Budgets describe in financial terms the plans to achieve an entity's strategic objectives.

Accepted Answer

A) True 
 B)False

Question 18

The beginning cash balance is not included on the cash budget since the cash budget deals exclusively with cash flows rather than with balance sheet amounts.

Accepted Answer

A) True 
 B)False

Question 19

A sales budget is given below for one of the products manufactured by the Key Co.:

Accepted Answer

@#IMG-DLM& 
The inventory of finished goods at the

Question 20

Pardee Company plans to sell 12,000 units during the month of August.If the company has 2,500 units on hand at the start of the month,and plans to have 2,000 units on hand at the end of the month,how many units must be produced during the month?

Accepted Answer

A)  11,500 units. 
B)  12,000 units. 
C)  12,500 units. 
D)  14,000 units. 
A)  11,500 units. 
B)  12,000 units. 
C)  12,500 units. 
D)  14,000 units.

In a budget of cash receipts for March,the total cash receipts would be:

Which of the following is not a benefit of budgeting?

A sales budget is given below for one of the products manufactured by the OMI Co.:

On a budgeted balance sheet,the retained earnings number is the net income number as projected by the budgeted income statement.

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following BEST describes the production budget?

Determine what the cash collection for October will be.

If Pardise Company plans to sell 480,000 units during July,the number of units it would have to manufacture during July would be:

A production budget is to a manufacturing firm as a merchandise purchases budget is to a merchandising firm.

If 500,000 finished units were to be manufactured during July,the units of raw material needed to be purchased would be:

In a traditional incremental approach to budgeting,there is usually the assumption that the previous year's budget is used as a starting point.

Superior Industries' sales budget shows quarterly sales for the next year as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales.Budgeted production in units for the second quarter should be:

The repayment (including interest)of financing during the second quarter (item d in thousands)is:

The budgeted net income for December is:

Which of the following statements is true about zero-based budgeting?

The collections from customers during the first quarter (item a in thousands)are:

Budgets describe in financial terms the plans to achieve an entity's strategic objectives.

The beginning cash balance is not included on the cash budget since the cash budget deals exclusively with cash flows rather than with balance sheet amounts.

A sales budget is given below for one of the products manufactured by the Key Co.:

Pardee Company plans to sell 12,000 units during the month of August.If the company has 2,500 units on hand at the start of the month,and plans to have 2,000 units on hand at the end of the month,how many units must be produced during the month?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 7: Profit Planning

In a budget of cash receipts for March,the total cash receipts would be:

Which of the following is not a benefit of budgeting?

A sales budget is given below for one of the products manufactured by the OMI Co.:

On a budgeted balance sheet,the retained earnings number is the net income number as projected by the budgeted income statement.

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following BEST describes the production budget?

Determine what the cash collection for October will be.

If Pardise Company plans to sell 480,000 units during July,the number of units it would have to manufacture during July would be:

A production budget is to a manufacturing firm as a merchandise purchases budget is to a merchandising firm.

If 500,000 finished units were to be manufactured during July,the units of raw material needed to be purchased would be:

In a traditional incremental approach to budgeting,there is usually the assumption that the previous year's budget is used as a starting point.

Superior Industries' sales budget shows quarterly sales for the next year as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales.Budgeted production in units for the second quarter should be:

The repayment (including interest)of financing during the second quarter (item d in thousands)is:

The budgeted net income for December is:

Which of the following statements is true about zero-based budgeting?

The collections from customers during the first quarter (item a in thousands)are:

Budgets describe in financial terms the plans to achieve an entity's strategic objectives.

The beginning cash balance is not included on the cash budget since the cash budget deals exclusively with cash flows rather than with balance sheet amounts.

A sales budget is given below for one of the products manufactured by the Key Co.:

Pardee Company plans to sell 12,000 units during the month of August.If the company has 2,500 units on hand at the start of the month,and plans to have 2,000 units on hand at the end of the month,how many units must be produced during the month?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters