QUESTION 1Which of the following statements is false about cash budgets?O Cash receipts are calculated by adding up all the cash inflows in a given monthO When calculating the cash budget the firm must consider many aspects such as, cash receipts, cash expenses, minimum desired cash balance, andprevious loans.O Cash receipts include sales, investment income and interest expenses.All of the above are trueQUESTION 2Based on the data below calculate the company's combined cost?Annual requirements = 7500 unitsOrdering cost = BD 12Holding cost BD 0.5O125300450001500000

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Answered: QUESTION 1 Which of the following…

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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KA. Please answer fast
Haha
Bank loan officers would find which of the following budgets to be one of the most important in determining whether or not to give a company a loan? Sales budget O Production budget O Budgeted income statement O Budgeted balance sheet O Cash budget
The company may need to borrow money if : a. total cash available is more than the cash needed for expenditure in the budget period . b. the cash needed for expenditure in the budget period trails behind the total cash available . c. the cash needed to pay for expenditures is less than the total of the opening cash balance plus the cash receipts in the budget period d. there is a cash deficiency in the budget period . e . None of the given answers .
which one is correct please confirm? QUESTION 16 When preparing a cash budget, once a firm has estimated its cash receipts the firm must ____________. a. pay dividends to its stockholders b. determine the desired cash balance c. plan a pro forma statement d. schedule disbursements
4. The difference between the budgeted amounts of Sales and Cash Received for sales is equal to the budgeted change in: a. Cash b. Accounts Receivable c. Accounts Payable d. Retained Earnings e. None of the Above
An income statement differs from a cash flow budget in the following ways: A. A cash flow budget does not account for non-cash expenses B. A cash flow budget includes full cost and sale value of capital assets C. A cash flow budget includes non-farm income, loan receipts, and debt payments. D. All of the above
The percentage of accounts receivable that is uncollectible can be ignored for cashbudgeting becausea. no cash is received from an account that defaults.b. it is included in cash sales.c. it appears on the budgeted income statement.d. for most companies, it is not a material amount.e. None of these.
?Which of the following statements is false about budgeted income statement and budgeted balance sheet .None of the given answers .a O The cash budget must be prepared first before preparing both the budgeted income statement and the .b O .budgeted balance sheet The ending finished goods inventory will be included in the budgeted balance sheet .c O .The budgeted balance sheet must be prepared first before preparing the budgeted income statement .d O .Credit purchases will be included in the accounts payable in the budgeted balance sheet .e O
8
Answer this question İn some organizations (firms, universities, government agencies), spending appears to increase as the end of the budgeting period approaches, even if there are no seasonal differences. What might cause this? (A). "Our cash budget shows a surplus for the quarter, so we do not have to think about arranging any bank financing." Comment on this statement. (B). Accrual accounting is preferable to cash flow accounting because the information is more relevant to all users of financial statements. Discuss and answer the question

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