Acct. 2002 Final Ch. 9

Your page rank:

Total word count: 1056
Pages: 4

Calculate the Price

- -
275 words
Looking for Expert Opinion?
Let us have a look at your work and suggest how to improve it!
Get a Consultant

Budgets are used to accomplish all of the following​ tasks, except

recording actual results.

Strategic planning is beneficial because the organization can

establish long−term goals that extend 5−10 years into the future.

A rolling budget is a budget that

is continuously​ updated, so that the next 12 months of operations are always budgeted.

Most companies use​ ________ when the managers develop budgets each year.

participative budgeting

Which of the following is a potential disadvantage of participative​ budgeting?

Managers may build slack into the budget.

Managers may intentionally build slack into the budget

-to acquire the resources they need in the event the organization implements a budget cut. -because they are uncertain about the future. -to make their performance appear better (all of the above)

All of the following are functions of the budget committee except

determine the bonuses the organization awards to employees that achieve the target budget

Which of the following should the organization use to initiate a​ budget?

-last year’s actual amounts -last year’s budget -zero-based budgeting (any of the above)

Which of the following is an advantage of zero−based ​budgeting?

Zero−based budgeting forces managers to justify each dollar in the budget to ensure that some expenses are lower in a current year compared to what they were in previous years.

The​ ________ budget is a component in a financial budget.


The​ ________ budget is a component in a financial budget.

capital expenditures

The​ ________ budget is a component in a financial budget.

. budgeted balance sheet

The​ ________ budget is a component in an operating budget.


Which of the following alternatives reflects the proper order of preparing components of the master​ budget?
1. Production budget
2. Sales budget
3. Direct materials budget

2, 1, 3

Which of the following is an advantage of the budgeting​ process?

Coordinates the activities of the organization

Regarding the budgeting​ process, which of the following statements is true​?

The budget should be designed from the bottom​ up, with input from managers at all levels.

Which of the following is a benefit to an organization that implements a​ budget?

-Budgets help managers improve their decisionminus−making processes in an organization. -Budgets help managers focus their attention on the future needs in an organization. -Budgets help the manager improve the motivation of employees in the workplace. (all of the above)

Which of the following terms is useful because it compares​ "actual" revenues and expenses against​ "budgeted" revenues and​ expenses?

Performance report

​"The comprehensive​ budget" is best described by which of the following​ terms?

Master budget

The​ ________ budget begins with the number of units to be sold.


Which of the following budgets or financial statements is part of the operating​ budget?

sales budget

The​ ________ is a plan that shows the units to be sold and the projected selling price and is also the starting point in the budgeting process.

sales budget

In preparing the operating​ budget, the first step is preparing the

sales budget

On the production​ budget, the number of units to be produced is computed as

unit sales​ + desired end inventory − beginning inventory.

The​ ________ budget is the only budget stated only in​ units, not dollars.


On the direct labor​ budget, the total quantity of direct labor hours needed is computed as

units to be produced times × direct labor hour per unit

On the direct materials​ budget, the total quantity of direct materials to purchase is computed as

quantity needed for production​ + desired end inventory of DM − beginning inventory of DM.

Which of the following budgets usually shows separate sections for fixed and variable​ costs?

Operating expenses budget and manufacturing overhead budget

Kotrick Company has beginning inventory of 18,000 units and expected sales of 26,000 units. If the desired ending inventory is 12,000 ​units, how many units should be​ produced?


A company sells goods and offers credit terms of​ "net 30​ days." What does this reveal to the company that sold the​ goods?

The customer has up to 30 days to pay back the seller for the goods purchased without penalty.

Which of the following items is a component of a cash payments​ budget?

Cash dividends

Which of the following types of cash outlays contains its own​ budget?

capital expenditures

A combined cash budget includes all of the following except

-projected cash collections and cash payments. -projected cash balance at the end of the month. -projected borrowings and repayments. (all of the above are shown on the combined cash budget)

​"Capital expenditures​ budget" is best described by which of the following​ concepts?

A​ company’s plan to purchase​ property, plant and​ equipment, and other long−term assets

​________ is a what−if technique that asks what a result will be if a predicted amount is not achieved or if an underlying assumption changes.

Sensitivity analysis

​"Combined cash​ budget" is best defined by which of the​ following?

Details about how the company expects to move out of the beginning cash balance and into the desired ending cash balance

Which of the following is an example of a financial​ budget?

Budgeted balance sheet

A manager considers all of the following when he or she prepares the cash budget except

depreciation expense.

The final step in the preparation of the financial budget is the preparation of which of the​ following?

Budgeted balance sheet

Einstein Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $12,000. Budgeted cash receipts are $80,000​, while budgeted cash disbursements are$67,000. Einstein Company wants to have an ending cash balance of $40,000. The excess​ (deficiency) of cash available over disbursements for the month would be


Roman Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $42,000. Budgeted cash receipts are $107,000​, while budgeted cash disbursements are $129,000. Roman Company wants to have an ending cash balance of $47,000. How much would Roman Company need to borrow to achieve its desired ending cash​ balance?


June sales were $3,000 while projected sales for July and August were $8,600 and $4,000​, respectively. All credit sales are collected in the month following the sale. Sales are 75​% credit and 25​% cash. What are the total expected collections for​ July?


Purchases in May were $60,000​, while expected purchases for June and July are $79,000 and $86,000​, respectively. All purchases are paid 30​% in the month of purchase and 70​% in the following month. At what amount are June payments for purchases​ budgeted?


Share This

More flashcards like this

NCLEX 10000 Integumentary Disorders

When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? a) ...

Read more


A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. I can’t do anything without ...

Read more

NASM Flashcards

Which of the following is the process of getting oxygen from the environment to the tissues of the body? Diffusion ...

Read more

Unfinished tasks keep piling up?

Let us complete them for you. Quickly and professionally.

Check Price

Successful message