Question 1

Part of the cash budget is based on information taken from the capital expenditures budget.

Accepted Answer

A) True 
 B)False

Question 2

Match between columns
                        Premises: A plan that shows the expected sales units and the dollars from these sales.
A managerial accounting report that shows predicted amounts of the company's assets, liabilities, and balances as of the end of the budget period.
A plan that shows the expected cash inflows and cash outflows during the budget period.
A plan that shows the units and dollars of merchandise to be purchased during the budget period.
A plan that plans the predicted operating expenses not included in the selling expenses or manufacturing budgets.
A formal, comprehensive plan for a company's future that includes several individual budgets that are linked with each other to form a coordinated plan.
A managerial accounting report that shows predicted amounts of sales and expenses for the budget period.
A quantity of inventory that provides protection against lost sales caused by unfulfilled demand from customers or delays in shipments from suppliers.
A formal statement of a company's future plans, usually expressed in monetary terms.

Accepted Answer

The Answer of Cash budget and Sales budget and General is...

Question 3

A department store has budgeted cost of goods sold for March of $60,000 for its women's shorts. Management wants to have $12,000 of shorts in inventory at the end of the month to prepare for the summer season. Beginning inventory in March was $8,000. What dollar amount of shorts should be purchased to meet the above plans?

Accepted Answer

The answer of A department store has budgeted cost of...

Question 4

Justin Company's budget includes the following credit sales for the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Credit sales are collected as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales?

Accepted Answer

A)  $19,700. 
B)  $28,500. 
C)  $30,000. 
D)  $31,100. 
E)  $33,900. 
A)  $19,700. 
B)  $28,500. 
C)  $30,000. 
D)  $31,100. 
E)  $33,900.

Question 5

In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover?

Accepted Answer

A)  February 2017-January 2018 
B)  March 2017-February 2018 
C)  December 2017-November 2018 
D)  April 2017-March 2018 
E)  January 2018-December 2018 
A)  February 2017-January 2018 
B)  March 2017-February 2018 
C)  December 2017-November 2018 
D)  April 2017-March 2018 
E)  January 2018-December 2018

Question 6

Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following unit sales for the first four months of the current year:   Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?

Accepted Answer

A)  2,000. 
B)  2,420. 
C)  2,020. 
D)  1,600. 
E)  2,820. 
A)  2,000. 
B)  2,420. 
C)  2,020. 
D)  1,600. 
E)  2,820.

Question 7

Bengal Co. provides the following unit sales forecast for the next three months:   The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for August are:

Accepted Answer

A)  6,950 units. 
B)  4,310 units. 
C)  7,090 units. 
D)  5,665 units. 
E)  4,135 units. 
A)  6,950 units. 
B)  4,310 units. 
C)  7,090 units. 
D)  5,665 units. 
E)  4,135 units.

Question 8

Budgeting is an informal plan for future business activities.

Accepted Answer

A) True 
 B)False

Question 9

The merchandise purchases budget is the starting point for preparing the master budget of a merchandiser.

Accepted Answer

A) True 
 B)False

Question 10

If applied correctly, budgeting may have a positive effect on employee motivation.

Accepted Answer

A) True 
 B)False

Question 11

A master budget refers to a company's sales budget that includes all of its segments or departments.

Accepted Answer

A) True 
 B)False

Question 12

A company's history indicates that 20% of its sales are for cash and the remaining 80% are on credit. Collections on credit sales are 30% in the month of the sale and 70% the following month. Projected sales for January, February, and March are $75,000, $92,000 and $60,000, respectively. The March expected cash receipts are $80,500.

Accepted Answer

A) True 
 B)False

Question 13

A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

Accepted Answer

The answer of A ________ is a continuously revised budget...

Question 14

Boulware Company's budgeted production calls for 5,000 units in October and 8,000 units in November. Each unit requires 8 pounds (lbs.) of raw material A. Each month's ending inventory of raw materials should equal 20% of the following month's budgeted materials requirements. The October 1 inventory for this material is 8,000 pounds. What is the budgeted materials purchases in pounds for October?

Accepted Answer

A)  40,000 lbs. 
B)  44,800 lbs. 
C)  52,800 lbs. 
D)  60,800 lbs. 
E)  35,200 lbs. 
A)  40,000 lbs. 
B)  44,800 lbs. 
C)  52,800 lbs. 
D)  60,800 lbs. 
E)  35,200 lbs.

Question 15

The process of evaluating performance can be improved by using budgets.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following budgets is not an operating budget?

Accepted Answer

A)  Sales budget. 
B)  Cash budget. 
C)  General and administrative expense budget. 
D)  Selling expenses budget. 
E)  Production budget. 
A)  Sales budget. 
B)  Cash budget. 
C)  General and administrative expense budget. 
D)  Selling expenses budget. 
E)  Production budget.

Question 17

Operating budgets include all the following except the:

Accepted Answer

A)  Sales budget. 
B)  Budgeted balance sheet. 
C)  Production budget. 
D)  Selling expense budget. 
E)  General and administrative expense budget. 
A)  Sales budget. 
B)  Budgeted balance sheet. 
C)  Production budget. 
D)  Selling expense budget. 
E)  General and administrative expense budget.

Question 18

The budgeted balance sheet and income statement are normally completed after preparation of operating and capital expenditure budgets.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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

Question 20

All of the following are steps in the budgetary control process except:

Accepted Answer

A)  Develop the budget from planned objectives. 
B)  Compare actual results to budgeted amounts and analyze differences. 
C)  Take corrective and strategic actions. 
D)  Communicate differences to supervisors to facilitate promotion decisions. 
E)  Establish new objectives and a new budget. 
A)  Develop the budget from planned objectives. 
B)  Compare actual results to budgeted amounts and analyze differences. 
C)  Take corrective and strategic actions. 
D)  Communicate differences to supervisors to facilitate promotion decisions. 
E)  Establish new objectives and a new budget.

Part of the cash budget is based on information taken from the capital expenditures budget.

In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover?

Bengal Co. provides the following unit sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for August are:

Budgeting is an informal plan for future business activities.

The merchandise purchases budget is the starting point for preparing the master budget of a merchandiser.

If applied correctly, budgeting may have a positive effect on employee motivation.

A master budget refers to a company's sales budget that includes all of its segments or departments.

A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

The process of evaluating performance can be improved by using budgets.

Which of the following budgets is not an operating budget?

Operating budgets include all the following except the:

The budgeted balance sheet and income statement are normally completed after preparation of operating and capital expenditure budgets.

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

All of the following are steps in the budgetary control process except:

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

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Exam 7: Master Budgets and Performance Planning

Part of the cash budget is based on information taken from the capital expenditures budget.

In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover?

Bengal Co. provides the following unit sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for August are:

Budgeting is an informal plan for future business activities.

The merchandise purchases budget is the starting point for preparing the master budget of a merchandiser.

If applied correctly, budgeting may have a positive effect on employee motivation.

A master budget refers to a company's sales budget that includes all of its segments or departments.

A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

The process of evaluating performance can be improved by using budgets.

Which of the following budgets is not an operating budget?

Operating budgets include all the following except the:

The budgeted balance sheet and income statement are normally completed after preparation of operating and capital expenditure budgets.

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

All of the following are steps in the budgetary control process except:

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

Filters