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CASH BUDGET

Total questions: 5

Worksheet time: 2mins

Name
Class
Date
1.

What type of budget provides information regarding the number of units

that should be produced over a given accounting period based on expected sales

and targeted level of ending inventories?

a)

Cash Flow Budget

b)

Financial Budget

c)

Production Budget

d)

Sales Budget

2.

Which type of budget gives some expected sales revenue and expenses, and

selling for the organization for a specific period of time?

a)

Cash Flow Budget

b)

Operations Budget

c)

Production Budget

d)

Sales Budget

3.

What type of budgets refers to the variable and fixed costs needed to run

the operations of the company but are not directly attributable to the generation of

sales?

a)

Financial Budget

b)

Operations Budget

c)

Production Budget

d)

Sales Budget

4.

What is TRUE about cash budget?

a)

It forecasts the timing of the cash inflows and matches them with cash

inflows from sales and other receipts.

b)

It calculates the number of units of products that must be manufactured.

c)

It forecasts the revenues and expenses expected for one or more future

periods.

d)

It is typically formulated by the management team just prior to the

beginning of the year, and shows expected activity levels for the entire

year.

5.

Study and analyzed the following sentences about operation costs.

I. Operation costs are a mixed variable and fixed cost.

II. Variable costs usually vary with sales.

III. Fixed costs changed as the volume of sales changed.

a)

I and II are true.

b)

I and III are true

c)

II and III are true.

d)

III is false.