NEW
Font size
WorksheetsMaster budget and Cash Budgeting
Total questions: 10
Worksheet time: 5mins
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
