acc topic 10

What are the learning objectives of the topic 'Budgeting: A Malaysian Perspective'?

• LO2: Describe the basic elements of the budget process, the two major types of budgeting, and the use of computers in budgeting.

• LO4: Prepare the basic operating budgets for a merchandising company.

• LO1: Describe budgeting, its objectives, and its impact on human behavior.

• LO3: Describe the master budget for a merchandising company.

What managerial functions are affected by budgeting?

• Directing, Organizing, and Leading

• Organizing, Leading, and Controlling

• Planning, Directing, and Controlling

• Planning, Organizing, and Leading

What problems can arise in the budgeting process related to human behavior?

• Setting budget goals too high, Setting budget goals too low, Setting budget goals too accurately

• Setting budget goals too high, Setting budget goals too low, Setting conflicting budget goals

• Setting budget goals too high, Setting budget goals too low, Setting budget goals too flexibly

• Setting budget goals too high, Setting budget goals too low, Setting budget goals too rigidly

What is the process of participative budgeting?

• Top-down approach to budgeting

• Bottom-up approach to budgeting

• Lateral approach to budgeting

• Hierarchical approach to budgeting

What is the budgetary period for operating activities?

• Weekly

• Annually

• Monthly

• Quarterly

What is the primary source of estimated cash receipts in the cash budget?

• Cash sales and collections on account

• Equity financing

• Debt financing

• Interest revenue

What is the purpose of the capital expenditures budget?

• Summarize plans for acquiring financial assets

• Summarize plans for acquiring intangible assets

• Summarize plans for acquiring current assets

• Summarize plans for acquiring fixed assets

What is the budgeted statement of financial position based on?

• Master budget only

• Financial budgets only

• Operating budgets only

• Operating and financial budgets

What is the primary role of budgets for organizations?

• To illustrate budgeting for a merchandising company

• To manage the operations of government agencies

• To periodically compare actual results with the goals

• To establish specific goals and execute plans to achieve them

What is the main disadvantage of static budgets?

• They are not used by government entities

• They do not adjust for changes in activity levels

• They are not used by service companies

• They are not used for purchasing, engineering, and accounting functions