Question 1

Which of the following is an example of the benchmarking function of a budget?

Accepted Answer

A) A budget demands integrated input from different business units and functions. 
B) Budgeting requires close cooperation between accountants and operational personnel. 
C) Budget figures are used to evaluate the performance of managers. 
D) The budget outlines a specific course of action for the coming period. 
A) A budget demands integrated input from different business units and functions. 
B) Budgeting requires close cooperation between accountants and operational personnel. 
C) Budget figures are used to evaluate the performance of managers. 
D) The budget outlines a specific course of action for the coming period.

Question 2

Nobell Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:   There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of June.

Accepted Answer

A) $35,700 
B) $21,900 
C) $46,100 
D) $54,600 
A) $35,700 
B) $21,900 
C) $46,100 
D) $54,600

Question 3

When a company is preparing a budgeted statement of cash flows, the payments for selling and administrative expenses can be obtained from:

Accepted Answer

A) budgeted payments for purchases. 
B) the sales budget. 
C) the cash budget. 
D) the budgeted balance sheet. 
A) budgeted payments for purchases. 
B) the sales budget. 
C) the cash budget. 
D) the budgeted balance sheet.

Question 4

For any organization, the primary source of cash is from its customers.

Accepted Answer

A) True 
 B)False

Question 5

A company with different segments using different software configurations can easily combine budget data of different segments to create the master budget.

Accepted Answer

A) True 
 B)False

Question 6

Components of the master budget are: the operating budget, the capital expenditures budget and the financial budget.

Accepted Answer

A) True 
 B)False

Question 7

In the cash flow statement, all cash receipts and payments are categorized into: Operating activities, Financing activities and:

Accepted Answer

A) Investing activities. 
B) Merchandising activities. 
C) Budgeting activities. 
D) Controlling activities. 
A) Investing activities. 
B) Merchandising activities. 
C) Budgeting activities. 
D) Controlling activities.

Question 8

If the cost of indirect materials needed for production is insignificant, it should not be included in the budgeting process.

Accepted Answer

A) True 
 B)False

Question 9

At a company with different business units, individual managers make decisions by changing various assumptions of their budget in order to determine how the modifications would affect the operational and financial results. This is an example of:

Accepted Answer

A) financial statement analysis. 
B) responsibility accounting. 
C) sensitivity analysis. 
D) zero-based budgeting. 
A) financial statement analysis. 
B) responsibility accounting. 
C) sensitivity analysis. 
D) zero-based budgeting.

Question 10

An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as:

Accepted Answer

A) benchmarking. 
B) appropriation. 
C) budgetary slack. 
D) variance analysis. 
A) benchmarking. 
B) appropriation. 
C) budgetary slack. 
D) variance analysis.

Question 11

The direct material budget is prepared on the basis of the:

Accepted Answer

A) cash budget. 
B) master budget. 
C) capital expenditure budget. 
D) production budget. 
A) cash budget. 
B) master budget. 
C) capital expenditure budget. 
D) production budget.

Question 12

On June 30, 2015, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of 2015. The following data is provided:   The amount of cash that should be shown in the budgeted balance sheet as on September 30th would be:

Accepted Answer

A) $6,958. 
B) $8,000. 
C) $5,254. 
D) $4,297. 
A) $6,958. 
B) $8,000. 
C) $5,254. 
D) $4,297.

Question 13

From the following details, provided by a merchandiser, prepare the selling and administrative expenses budget for the first quarter of the next year.

Accepted Answer

The answer of From the following details, provided by a...

Question 14

Preparation of the production budget is the first step in the preparation of operating budget.

Accepted Answer

A) True 
 B)False

Which of the following is an example of the benchmarking function of a budget?

When a company is preparing a budgeted statement of cash flows, the payments for selling and administrative expenses can be obtained from:

For any organization, the primary source of cash is from its customers.

A company with different segments using different software configurations can easily combine budget data of different segments to create the master budget.

Components of the master budget are: the operating budget, the capital expenditures budget and the financial budget.

In the cash flow statement, all cash receipts and payments are categorized into: Operating activities, Financing activities and:

If the cost of indirect materials needed for production is insignificant, it should not be included in the budgeting process.

At a company with different business units, individual managers make decisions by changing various assumptions of their budget in order to determine how the modifications would affect the operational and financial results. This is an example of:

An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as:

The direct material budget is prepared on the basis of the:

On June 30, 2015, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of 2015. The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as on September 30^th would be:

From the following details, provided by a merchandiser, prepare the selling and administrative expenses budget for the first quarter of the next year.

Preparation of the production budget is the first step in the preparation of operating budget.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 22: Master Budgets

Which of the following is an example of the benchmarking function of a budget?

When a company is preparing a budgeted statement of cash flows, the payments for selling and administrative expenses can be obtained from:

For any organization, the primary source of cash is from its customers.

A company with different segments using different software configurations can easily combine budget data of different segments to create the master budget.

Components of the master budget are: the operating budget, the capital expenditures budget and the financial budget.

In the cash flow statement, all cash receipts and payments are categorized into: Operating activities, Financing activities and:

If the cost of indirect materials needed for production is insignificant, it should not be included in the budgeting process.

At a company with different business units, individual managers make decisions by changing various assumptions of their budget in order to determine how the modifications would affect the operational and financial results. This is an example of:

An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as:

The direct material budget is prepared on the basis of the:

On June 30, 2015, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of 2015. The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as on September 30th would be:

From the following details, provided by a merchandiser, prepare the selling and administrative expenses budget for the first quarter of the next year.

Preparation of the production budget is the first step in the preparation of operating budget.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

On June 30, 2015, Alpha Company's cash balance is $4,000. Alpha is now preparing their cash budget for the third quarter of 2015. The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as on September 30^th would be: