2. State whether the following sentences are TRUE or FALSEASTARINS#Statements1The production budget is typically prepared prior to the salesbudget.One benefit of budgeting is that it coordinates the activities ofthe entire organization.The master budget is a network consisting of many separatebudgets that are interdependent.Sales forecasts are drawn up after the cash budget has beencompleted because only then are the funds available formarketing known.5A sales budget is a detailed schedule showing the expected salesfor the budget period; typically, it is expressed in both dollarsand units of product.234TRUE or FALSE3. Which of the following represents the normal sequence in which the indicated budgets areprepared?A. Direct Materials, Cash, SalesB. Production, Cash, Income StatementC. Sales, Balance Sheet, Direct LaborD. Production, Manufacturing Overhead, Sales 12804. Which of the following represents the correct order in which the indicated budget documents for amanufacturing company would be prepared?A. Sales budget, cash budget, direct materials budget, direct labor budgetB. Production budget, sales budget, direct materials budget, direct labor budgetC. Sales budget, cash budget, production budget, direct materials budgetD. Selling and administrative expense budget, cash budget, budgeted income statement, budgetedbalance sheet5. Which of the following statements is not correct?A. The sales budget is the starting point in preparing the master budget.B. The sales budget is constructed by multiplying the expected sales in units by the sales price.C. The sales budget generally is accompanied by a computation of expected cash receipts for theforthcoming budget period.D. The cash budget must be prepared prior to the sales budget because managers want to knowthe expected cash collections on sales made to customers in prior periods before projectingsales for the current period.6. Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year.Jan$15,000$100,000Cash sales.......FebMar$24,000 $18,000$120,000 $90,000Apr$14,000$70,000Credit sales.....On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following

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2. State whether the following sentences are TRUE or FALSE # Statements 1 2 One benefit of budgeting is that it coordinates the activities of the entire organization. The master budget is a network consisting of many separate budgets that are interdependent. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. 5 A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of product. The production budget is typically prepared prior to the sales budget. 3 TRUE or FALSE

2. State whether the following sentences are TRUE or FALSE # Statements 1 2 One benefit of budgeting is that it coordinates the activities of the entire organization. The master budget is a network consisting of many separate budgets that are interdependent. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. 5 A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of product. The production budget is typically prepared prior to the sales budget. 3 TRUE or FALSE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Describe the 5 types of budgets listed for these Wk 3 Financial Exercises: Problem Set 2, Part 1. In your descriptions, include the budget's objective, how the budget assists an organization in managing its financial activities, and what types of data need to be included in that specific budget. Type of Budget Cash Flow Operating Sales Static Financial Description Insert cash flow description. Insert operating description. Insert sales description. Insert static description. Insert financial description.
Define the following with formulaes if possible: Please write full definations. 1. Sales Budget 2. Cash Receipt Budget 3. Purchases Budget 4. Cash Payment Budget 5. Summary Cash Budget 6. Short Term Financial Needs 7. Budgeted Income Statement 8. Budgeted Balance Sheet
1. How does budgeting provide important information to managers and operating personnel? 2. Explain at least three times of budgets. 3. Explain how a flexible budget is used?
A static budget is ( check all that apply): a. Prepared for various levels of sales volume b. included in the master budget c. Prepared at the beginning of a period d. Prepared for only one level of sales volume
true and false a. Developing a budget is a critical step in planning any economic activity. This is true for businesses, for governmental agencies, and for individuals. (……….) b. The sales budget shows the projected sales in units and the total expected sales revenue. (……….)
Which of the following statements is NOT correct? a. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period. b. The sales budget is constructed by multiplying the expected sales in units by the sales price. c. The sales budget is the starting point in preparing the master budget. d. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
1. Describe the difference between a static and a flexible budget 2. Outline how often businesses must report GST 3. Describe a method that can be used to evaluate a budget or financial plan.
Zero-based budgeting refers to: a. Budgeting from the ground up as though the budget process were being initiated for the first time b. Using prior year’s budget as a bas year and adjusting it based on the experiences of the prior year and the expectations for the coming year c. Budgeting for cash inflows and outflows to time investments and borrowings in a way to maintain bank account with a minimum balance d. Developing budgeted costs from clear-cut measured relationships between inputs and outputs Clear my choice
4. The starting point in preparing a comprehensive budget is - Group of answer choices - the cash budget - a sales forecast - the budgeted income statement
Define the following with formulaes if possible: Please write full definations. 1. Cash Receipt Budget 2. Short Term Financial Needs 3.Budgeted Income Statement 4. Budgeted Balance Sheet
Q17: Among the advantages of object of expenditure approach all the following except а. It can be easily incorporated into the accounting system. b. Readers and preparers can easily understand the budget. С. It provides data useful primarily in the short run planning. d. Budgets are uncomplicated and can easily be prepared. Q18: Business organizations uses many types of budgets, the main budget used in governmental organizations is: а. Long term budget b. Cash forecast budget С. Capital Budget d. Operating budget
Which of the following is the cornerstone (or most critical element) of the master budget? a. The operating expenses budgetb. The budgeted balance sheetc. The sales budget d. The inventory, purchases, and cost of goods sold budget The budgeted statement of cash flows is part of which element of Amazon.com’s master budget? The financial budget The operating budget The capital expenditures budget None of the above