Question 1

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

Accepted Answer

A) budgeted payments for direct materials purchases 
B) sales budget 
C) cash budget 
D) budgeted balance sheet 
A) budgeted payments for direct materials purchases 
B) sales budget 
C) cash budget 
D) budgeted balance sheet

Question 2

Freighters,Inc.has the following budgeted figures:
Calculate the budgeted purchases for the month of January.

Accepted Answer

A) $23,600 
B) $51,700 
C) $24,700 
D) $4,500 
A) $23,600 
B) $51,700 
C) $24,700 
D) $4,500

Question 3

What is the formula used to determine the amount of merchandise inventory to be purchased?

Accepted Answer

Cost of goods sold + Desired e

Question 4

For a merchandising company,the budgeted total sales equals the expected number of units sold multiplied by the budgeted selling price per unit.

Accepted Answer

A) True 
 B)False

Question 5

Monument Corp.is preparing its budget for the first quarter of 2018.The following data is provided:
 
April's cost of goods sold is 28,000.The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be ________.

Accepted Answer

A) $9,500 
B) $10,400 
C) $33,000 
D) $10,600 
A) $9,500 
B) $10,400 
C) $33,000 
D) $10,600

Question 6

The cost accountant works with the office and sales managers to develop the selling and administrative expense budget.

Accepted Answer

A) True 
 B)False

Question 7

The direct materials budget is prepared using information from the ________ budget.

Accepted Answer

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

Question 8

While calculating the budgeted cash payments for selling and administrative expenses,noncash expenses like depreciation are also considered.

Accepted Answer

A) True 
 B)False

Question 9

A budget is a financial plan that managers use to coordinate a business's activities.

Accepted Answer

A) True 
 B)False

Question 10

The budgeted income statement________.

Accepted Answer

A) reports cash paid for purchases of direct materials 
B) includes amounts from the sales,cost of goods sold,cash,and capital expenditures budgets 
C) is accrual-based 
D) does not include depreciation expense 
A) reports cash paid for purchases of direct materials 
B) includes amounts from the sales,cost of goods sold,cash,and capital expenditures budgets 
C) is accrual-based 
D) does not include depreciation expense

Question 11

Louise,Inc.has a cash balance of $24,000 on April 1.The company is 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 May.

Accepted Answer

A) $25,000 
B) $59,000 
C) $55,000 
D) $50,400 
A) $25,000 
B) $59,000 
C) $55,000 
D) $50,400

Question 12

A budget represents the plans that a company has in place to achieve its goals.

Accepted Answer

A) True 
 B)False

Question 13

The financial budget of a merchandising company is similar to that of a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 14

The capital expenditures budget is completed before the preparation of the cash budget.

Accepted Answer

A) True 
 B)False

Question 15

Fulkron,Inc.provides the following data taken from its third quarter budget:
 
The cash balance on June 30 is projected to be $14,000.Based on the above data,calculate the shortfall the company is projected to have at the end of August.

Accepted Answer

A) $35,000 
B) $22,000 
C) $5,000 
D) $37,000 
A) $35,000 
B) $22,000 
C) $5,000 
D) $37,000

Question 16

The production budget is the first component of the operating budget.

Accepted Answer

A) True 
 B)False

Question 17

List the three sections of the cash budget.

Accepted Answer

1.Cash receipts
2.Ca

Question 18

A static budget is a financial plan for only one level of sales volume.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following describes the selling and administrative expenses budget?

Accepted Answer

A) It aids in planning to ensure the company has adequate inventory on hand. 
B) It captures the variable and fixed components of selling and administrative expenses of the business. 
C) It depicts the breakdown of sales based on terms of collection. 
D) It shows the cash flows related to the selling and administrative expenses and helps in planning to ensure the business has adequate cash. 
A) It aids in planning to ensure the company has adequate inventory on hand. 
B) It captures the variable and fixed components of selling and administrative expenses of the business. 
C) It depicts the breakdown of sales based on terms of collection. 
D) It shows the cash flows related to the selling and administrative expenses and helps in planning to ensure the business has adequate cash.

Question 20

A manufacturing company's budgeted income statement includes the following data:
 
The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later.In addition,50% of salaries expenses are paid in the same month,and the remaining 50% are paid one month later.Miscellaneous expenses,rent expense,and utilities expenses are assumed to be paid in the same month in which they are incurred.Insurance has been paid in advance for the year on January 1.
Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

Accepted Answer

A) $56,600 
B) $65,000 
C) $62,600 
D) $69,600 
A) $56,600 
B) $65,000 
C) $62,600 
D) $69,600

Exam 22: Master Budgets

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

Freighters,Inc.has the following budgeted figures: Calculate the budgeted purchases for the month of January.

What is the formula used to determine the amount of merchandise inventory to be purchased?

For a merchandising company,the budgeted total sales equals the expected number of units sold multiplied by the budgeted selling price per unit.

Monument Corp.is preparing its budget for the first quarter of 2018.The following data is provided: April's cost of goods sold is 28,000.The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be ________.

The cost accountant works with the office and sales managers to develop the selling and administrative expense budget.

The direct materials budget is prepared using information from the ________ budget.

While calculating the budgeted cash payments for selling and administrative expenses,noncash expenses like depreciation are also considered.

A budget is a financial plan that managers use to coordinate a business's activities.

The budgeted income statement________.

A budget represents the plans that a company has in place to achieve its goals.

The financial budget of a merchandising company is similar to that of a manufacturing company.

The capital expenditures budget is completed before the preparation of the cash budget.

Fulkron,Inc.provides the following data taken from its third quarter budget: The cash balance on June 30 is projected to be $14,000.Based on the above data,calculate the shortfall the company is projected to have at the end of August.

The production budget is the first component of the operating budget.

List the three sections of the cash budget.

A static budget is a financial plan for only one level of sales volume.

Which of the following describes the selling and administrative expenses 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