f prepaid expense reflected in the disbursement section of the cash budget is the same amount that is found on the monthly operating statement. True False
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The amount of prepaid expense reflected in the disbursement section of the cash budget is the same amount that is found on the monthly operating statement.
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- All of the accounts payable are for inventory purchases and all inventory items are purchased on account. What are the estimated cash disbursements for inventories for the budget period?6. At the end of the fiscal year Encumbrances is closed to Budgetary Fund Balance with a credit. True or FalseCash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Select one: True False
- a .Prepare an estimate of cash position for three months from April to June b. Based on the budget prepared, evaluate the cash position of the comupany, give your comments and provide suitable suggestion to the management on effective cash managenent.The budgeted monthly statement of profit or loss is drawn up on the basis of cash received and cash paid while the month-by-month cash budget is drawn up on the accruals basis. True FalseWhich of the following statements is true concerning the recording of a budget? At the beginning of the year, debit Appropriations. A debit to the Budgetary Fund Balance account indicates an expected surplus. At the beginning of the year, debit Estimated Revenues. At the end of the year, credit Appropriations.
- Order the following terms and operations to create the formula for the combined cash budget (before any financing is considered). E Beginning Cash Balance | Cash Payments 4 : Cash Collections Ending Cash Balance (before Financing) :::: ::::Which of the following statements is true concerning the recording of a budget? Choose the correct.a. At the beginning of the year, debit Appropriations.b. A debit to the Budgetary Fund Balance account indicates an expected surplus.c. At the beginning of the year, debit Estimated Revenues.d. At the end of the year, credit Appropriations.Cash budget is only allowed to be done on a monthly basis. * True O False
- Budgeted cash receipts in the month - budgeted cash payments in the month - budgeted cash at the start of the month = budgeted cash at the end of the month. True Falseg. Prepare a schedule of cash collected from customers for the quarter ended March 31, 20X1. h. Prepare the cash budget for the quarter ended March 31, 20X1.Kat Ltd.'s September balance sheet contains the following information: Cash Accounts receivable. Allowance for doubtful accounts Merchandise inventory $ 37,500 (dr) 126,000 (dr) 2,800 (cr) 26,250 (dr) Management has designated $37,500 as the firm's minimum monthly cash balance. Other information about the firm and its operations is as follows: a. Sales revenues of $350,000, $420,000, and $312,500 are expected for October, November, and December, respectively. All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1% uncollectible, which is set up as an allowance. c. Cost of goods sold is 60% of sales revenues. d. Management's target ending balance of merchandise inventory is 10% of the current month's budgeted cost of goods sold. e. All accounts payable for inventory are paid in the month of purchase. f. Other monthly expenses are $49,250, which includes $3,500 of depreciation and…