Who is responsible for the budget?

• Accountants

• Shareholders

• Investors

• Management

A budget is/does NOT

• A primary method of communication

• Promotes efficiency

• A means to always a profitable company

• Control device

What is NOT one of the factors that is considered in sales forecasting?

• Industry trends

• Technological developments

• Price changes

• CEO's input

The two classes of budgets are:

• Operating & Financial

• Variable & Fixed

• Sales & Product

• Direct materials & Direct labor

This budget shows the units that must be produced to meet anticipated sales.

• Direct materials

• Master

• Sales

• Production

A cash budget is used to determine:

• profit

• cash closing balance

• the value of the business

• the debts of the business

A budgeted income statement can be used by the business to predict:

• profit

• expenses

• revenue

• all of the above

A business may prepare for a cash deficit by:

• reducing planned profits

• reducing planned cash payments

• reducing capital contributions

• increasing loan payments

Management's operating & financial plans for a specified period, including budged financial reports is expressed in:

• Cash Budget

• Master Budget

• Production Budget

• Sales Budget

Which of the following items are not included in a cash budget?

• Gain on sale of asset

• Cash sales

• Payment received from debtors

• Interest received from the bank