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WorksheetsManage Finances - Element 1 Allocate Budget Resources
Total questions: 10
Worksheet time: 5mins
What is correct explanation for budgets ?
One of the tools that assists owners and managers of a business to plan and monitor the flow of money
A document that explains monetary terms displaying quantities
Short term plan that help managers to monitor the performance of the business
All of above
In general, budgets are prepared for...
Six Months
One year
Five years
Ten years
Managers find it useful to divide the business into segments or activity centres of two types. Those are..
Cost Centres & Profit Centres
Revenue Centres & Profit Centres
Select the correct definition of "Cash Budget"
probable future cash position of the business based on cash coming into the business and flowing out from the business for the period
gives expected cash sales and expenses for a period
budget developed to cater for the needs of a given function, conference, seminar or event
forecasts and tracks revenue from sales
What is the correct explanation of "purchasing budget"?
developed to accommodate the needs of specific project such as an extension to the premises, refurbishment, updating of major technology and systems
forecasts and tracks labour expenses
concerns other estimated operating expenses, such as rent, rates and other direct costs except materials and labour
addresses inventory required for a period in order to attain a nominated outcome or sales figure, such as buying the raw materials or products required to prepare a finished product
What item is not considered as a basic content of a budget ?
Name or title of the budget
Assets and Liabilities
Period to which the budget applies
Budget notes
Select the correct statement related to fixed and flexible budgets
Fixed budget change with actual volume and output achieved whereas flexible budget is not
The budget look at any variations that might occur in trade such as increases or decreases in revenue or levels of activity
A flexible budget creates a number of different scenarios that could possibly arise in terms of revenue or other relevant levels of activity.
Fixed budget comparisons are correct if the outputs are differs / Flexible budget comparisons are realistic
Choose the correct explanation of "Bank Deposit Documentation"
Statements provided by the banks showing details of and transactions for individual accounts the business has with the bank
Document supplied by the bank and gives information showing the position of all the accounts the business has with the bank on one document.
template documents provided by the bank that businesses complete when they deposit cash and non-cash items into the bank
Select the tax that cannot be seen in BAS (Business Activity Statement)
Goods and services tax (GST)
Pay as you earn (PAYE)
Pay As You Go (PAYG) instalments
PAYG withholding tax
Select the wrong statement related to business cheques.
Issued to a business by banks when the business establishes a cheque account
Cheques are written to settle bills the business needs to pay
The cheque books contain a number of pre-printed cheques identifying the name of the business, the bank name and a cheque number.
Both personal and corporate/business cheques are valid for only six months.
The name of the payee and the value of the cheque is also written on the cheque stub as a record of the payment
