Question 1

Which of the following budgets is not completed before a cash budget is prepared?

Accepted Answer

A)  Budgeted income statement. 
B)  Sales budget. 
C)  General and administrative expense budget. 
D)  Merchandise purchases budget. 
E)  Capital expenditures budget. 
A)  Budgeted income statement. 
B)  Sales budget. 
C)  General and administrative expense budget. 
D)  Merchandise purchases budget. 
E)  Capital expenditures budget.

Question 2

A sporting goods store budgeted August purchases of ski jackets at $140,000. The store had ski jackets costing $12,000 in its inventory at the beginning of August; and to cover part of anticipated September sales, they expect to have $25,000 of ski jackets in inventory at the end of the month of August. What is the budgeted cost of goods sold for August?

Accepted Answer

None

Question 3

A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

Accepted Answer

A)  Sales budget. 
B)  Cash budget. 
C)  Capital expenditures budget. 
D)  Merchandise purchases budget. 
E)  Selling expenses budget. 
A)  Sales budget. 
B)  Cash budget. 
C)  Capital expenditures budget. 
D)  Merchandise purchases budget. 
E)  Selling expenses budget.

Question 4

Match between columns
                        Premises:  A plan that lists the types and amounts of selling expenses expected during the budget period.
 A plan that shows expected activities and their levels for the budget period used to estimate resources required to perform the activities.
 A managerial accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period.
 A formal statement of future plans, usually expressed in monetary terms.
 A plan showing the expected sales units and dollars from the sales; the starting point in the budgeting process.
 A plan that lists dollar amounts estimated to be received from disposing of plant assets and spent on purchasing additional plant assets to carry out the budgeted business activities.
 The practice of preparing budgets for a selected number of several periods and revising those budgets as each period is completed.
 A plan showing the number of units to be produced each period, based on the units projected in the sales budget, along with inventory considerations.
 A plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans.
 Additional monthly or quarterly budgets to replace the ones that have lapsed as each budget period goes by.

Accepted Answer

The Answer of Budget and Capital expenditures budget and Activity-based is...

Question 5

Diego, Inc., sells two products, Baubles and Charms. The sales forecast in units for the first quarter of the coming year is:
 $$\begin{array} { l | l | l } 
& { \text { Baubles } } & \text { Charms } \
\hline \text { January } \ldots . . & 20,000 & 36,000 \
\hline \text { February } \ldots & 28,000 & 60,000 \
\hline \text { March ..... } & 36,000 & 64,000
\end{array}$$ Cash sales are 30% of each product's monthly sales. The remaining sales are credit sales which are collected as follows: 70% in the month of sale, 20% the next month, and 10% in the following month. Unit sale prices are $30 and $20 for Baubles and Charms, respectively.
Determine the company's cash receipts for March from its current and past sales.

Accepted Answer

Sales in d

Question 6

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor for the month of August is:

Accepted Answer

A)  $168,000. 
B)  $85,050. 
C)  $82,950. 
D)  $3,950. 
E)  $4,050. 
A)  $168,000. 
B)  $85,050. 
C)  $82,950. 
D)  $3,950. 
E)  $4,050.

Question 7

Which of the following must be prepared before the direct labor budget?

Accepted Answer

A)  Merchandise purchases budget. 
B)  Capital expenditures budget. 
C)  Production budget. 
D)  Selling expense budget. 
E)  Budgeted income statement. 
A)  Merchandise purchases budget. 
B)  Capital expenditures budget. 
C)  Production budget. 
D)  Selling expense budget. 
E)  Budgeted income statement.

Question 8

The master budget process usually ends with:

Accepted Answer

A)  The selling expense budget. 
B)  The production budget. 
C)  The budgeted balance sheet. 
D)  The overhead budget. 
E)  The sales budget. 
A)  The selling expense budget. 
B)  The production budget. 
C)  The budgeted balance sheet. 
D)  The overhead budget. 
E)  The sales budget.

Question 9

The capital expenditures budget summarizes the effects of financing activities on cash.

Accepted Answer

A) True 
 B)False

Question 10

Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000.
- To maintain the minimum cash balance of $10,000, the company must borrow:

Accepted Answer

A)  $27,700. 
B)  $6,700. 
C)  $7,000. 
D)  $0. 
E)  $10,000. 
A)  $27,700. 
B)  $6,700. 
C)  $7,000. 
D)  $0. 
E)  $10,000.

Question 11

Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the number of electric stapler sales budgeted for March should be:

Accepted Answer

A)  11,249 
B)  10,400 
C)  10,000 
D)  10,816 
E)  11,000 
A)  11,249 
B)  10,400 
C)  10,000 
D)  10,816 
E)  11,000

Question 12

Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales:
$$\begin{array} { l r r } 
\text { July } & \$ 90,000 \
\text { August } &  104,000 \
\text { September } & 120,000
\end{array}$$  Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

Accepted Answer

A)  $130,500. 
B)  $30,000. 
C)  $108,000. 
D)  $120,000. 
E)  $78,000. 
A)  $130,500. 
B)  $30,000. 
C)  $108,000. 
D)  $120,000. 
E)  $78,000.

Question 13

Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted:
   Additional data:
(1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000.
(2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month.
(3) Operating expenses are paid in the month they are incurred.
(4) A minimum cash balance of $25,000 is required at the end of each month.
(5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available.
Prepare the company's cash budget for May. Show the ending loan balance at May 31.

Accepted Answer

Todd Enterprises Cash Budget for the Mon

Question 14

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Material purchases
 $$\begin{array} { l l c } 
\text { January } & \text { February } & \text { March } \
\$ 12,040 & \$ 14,150 & \$ 10.970
\end{array}$$ Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 31 Accounts Payable balance is:

Accepted Answer

A)  $7,075. 
B)  $6,020. 
C)  $12,040. 
D)  $9,270. 
E)  $6,500. 
A)  $7,075. 
B)  $6,020. 
C)  $12,040. 
D)  $9,270. 
E)  $6,500.

Question 15

The number and types of budgets included in a master budget depend on the company's size and complexity.

Accepted Answer

A) True 
 B)False

Question 16

The usual starting point for preparing a master budget is forecasting or estimating:

Accepted Answer

A)  Expenditures. 
B)  Income. 
C)  Production. 
D)  Sales. 
E)  Cash payments. 
A)  Expenditures. 
B)  Income. 
C)  Production. 
D)  Sales. 
E)  Cash payments.

Which of the following budgets is not completed before a cash budget is prepared?

A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor for the month of August is:

Which of the following must be prepared before the direct labor budget?

The master budget process usually ends with:

The capital expenditures budget summarizes the effects of financing activities on cash.

Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the number of electric stapler sales budgeted for March should be:

The number and types of budgets included in a master budget depend on the company's size and complexity.

The usual starting point for preparing a master budget is forecasting or estimating:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

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Exam 22: Master Budgets and Planning

Which of the following budgets is not completed before a cash budget is prepared?

A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor for the month of August is:

Which of the following must be prepared before the direct labor budget?

The master budget process usually ends with:

The capital expenditures budget summarizes the effects of financing activities on cash.

Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the number of electric stapler sales budgeted for March should be:

The number and types of budgets included in a master budget depend on the company's size and complexity.

The usual starting point for preparing a master budget is forecasting or estimating:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

Filters