Financial Planning: Tools and Concepts

Which of the following budgets will show the expected cash receipts and expected cash disbursements of the firm?

• budgeted statement of financial position

• cost of goods sold

• budgeted statement of comprehensive income

• cash budget

The first step in creating the master budget is the creation of which budget?

• sales budget

• production budget

• cash budget

• capital budget

In which budget is the issuance of stock or borrowing money included?

• master budget

• financial budget

• cash budget

• capital budget

Which of the following items does NOT appear in a cash budget?

• delivery expense

• depreciation expense

• cost of material purchases

• direct labor cost

A merchandising company will never do the

• purchases budget

• budgeted statement of comprehensive income

• production budget

• cash budget

Which of the given budgets is the starting point in preparing a master budget?

• sales budget

• production budget

• purchases budget

• direct labor budget

The selling and administrative expenses budget includes

• Cost of goods sold

• fixed production expense

• supplies as a percentage of sales

• none of the above

All are components of the master budget, except

• sales budget

• production budget

• cash budget

• capital budget

Which of the following is the formula for budgeted direct labor hours?

• production in units x direct labor hours per unit

• production in units/direct labor hours per unit

• direct labor hours per unit - production in units

• none of the above

It is a budget that shows the projected number of units to be produced in meeting the projected sales.

• direct materials purchases budget.

• cash budget.

• production budget.

• none of these.