Question 1

Includes decisions to add or delete a product line or acquire buildings or equipment

Accepted Answer

Long?range planning

Question 2

A sales forecast is _____.

Accepted Answer

A) a prediction of sales under a given set of conditions 
B) the result of decisions to create conditions 
C) the same as a sales budget that will generate a desired level of sales 
D) all of these answers are correct 
A) a prediction of sales under a given set of conditions 
B) the result of decisions to create conditions 
C) the same as a sales budget that will generate a desired level of sales 
D) all of these answers are correct A

Question 3

The first step in preparing the master budget is generally the preparation of the budgeted income statement.

Accepted Answer

A) True 
 B)False  False

Question 4

Managers may lie to increase the resources allocated to their department.

Accepted Answer

A) True 
 B)False

Question 5

Budgets that focus on the budgeted cost of activities required to produce and sell products and services

Accepted Answer

Activity-b

Question 6

A major drawback of using historical results for judging current performance is that _____.

Accepted Answer

A) past results may be incorrect 
B) results may refer to a different manager 
C) inefficiencies may be concealed in the past performance 
D) all of these answers are correct 
A) past results may be incorrect 
B) results may refer to a different manager 
C) inefficiencies may be concealed in the past performance 
D) all of these answers are correct

Question 7

All of the following are operating budgets except the _____.

Accepted Answer

A) purchases budget 
B) capital budget 
C) cost of goods sold budget 
D) budgeted income statement 
A) purchases budget 
B) capital budget 
C) cost of goods sold budget 
D) budgeted income statement

Question 8

Busted Company expects to produce 19,000 units.Beginning finished goods inventory is 2,000 units and expected sales are 18,000 units.Expected ending finished goods inventory is _____.

Accepted Answer

A) 39,000 
B) 5,000 
C) 4,000 
D) 3,000 
A) 39,000 
B) 5,000 
C) 4,000 
D) 3,000

Question 9

Allows managers to assess the predicted impacts of various alternatives before final decisions are selected

Accepted Answer

Financial

Question 10

Bates Corporation has prepared the following sales budget: $\begin{array}{lr}\text { Month }&\text { Expected Sales }\\hline
\text { May } & \$ 84,000 \
\text { June } & 100,000 \
\text { July } & 92,000 \
\text { August } & 116,000 \
\text { September } & 98,000
\end{array}$ Credit sales are 80% of total sales.Collections are 80% in the month of sale, 15% in the month following the sale.The remaining 5% is expected to be uncollectible.
Required: Prepare a schedule of cash collections for June through August.

Accepted Answer

The answer of Bates Corporation has prepared the following sales...

Question 11

_____ budgeting is when budgets are formulated with the active participation of all affected employees

Accepted Answer

A) Financial 
B) Team 
C) Participative 
D) Shared 
A) Financial 
B) Team 
C) Participative 
D) Shared

Question 12

Which of the following is not a major benefit of budgeting?

Accepted Answer

A) Budgeting compels managers to think ahead. 
B) Budgeting provides definite expectations that are the best framework for judging subsequent performance. 
C) Budgeting aids managers in coordinating their efforts so the objectives of the organization as a whole match the objectives of its parts. 
D) Budgeting allows managers to operate day-to-day, reacting to current events rather than planning for the future. 
A) Budgeting compels managers to think ahead. 
B) Budgeting provides definite expectations that are the best framework for judging subsequent performance. 
C) Budgeting aids managers in coordinating their efforts so the objectives of the organization as a whole match the objectives of its parts. 
D) Budgeting allows managers to operate day-to-day, reacting to current events rather than planning for the future.

Question 13

Financial planning models enable managers to get answers to "what-if" questions.

Accepted Answer

A) True 
 B)False

Question 14

A major benefit of effective budgeting is that _____.

Accepted Answer

A) it compels managers to think ahead 
B) it aids managers in communicating objectives to units 
C) it provides benchmarks to evaluate subsequent performance 
D) all of these answers are correct 
A) it compels managers to think ahead 
B) it aids managers in communicating objectives to units 
C) it provides benchmarks to evaluate subsequent performance 
D) all of these answers are correct

Question 15

Cheating does not include making short-run decisions to increase profits that are not in the company's best long-run interests.

Accepted Answer

A) True 
 B)False

Question 16

Haggle Corporation, a wholesaler, has a sales budget for next month of $300,000.Cost of units sold is expected to be 40% of sales.All units are paid for in the month following purchase.The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired.Beginning accounts payable is $76,000. The ending balance in accounts payable for next month will be _____.

Accepted Answer

A) $122,000 
B) $120,000 
C) $118,000 
D) $78,000 
A) $122,000 
B) $120,000 
C) $118,000 
D) $78,000

Question 17

Cash collections from customers include the current month's cash sales plus collections on credit sales.

Accepted Answer

A) True 
 B)False

Question 18

Activity-based budgets are an example of functional budgeting.

Accepted Answer

A) True 
 B)False

Question 19

A _____ gives the expected sales under a given set of conditions.

Accepted Answer

A) sales prediction 
B) sales budget 
C) budget forecast 
D) sales forecast 
A) sales prediction 
B) sales budget 
C) budget forecast 
D) sales forecast

Question 20

The result of decisions to create the conditions that will generate a desired level of sales

Accepted Answer

The answer of The result of decisions to create the...

Includes decisions to add or delete a product line or acquire buildings or equipment

A sales forecast is _____.

The first step in preparing the master budget is generally the preparation of the budgeted income statement.

Managers may lie to increase the resources allocated to their department.

Budgets that focus on the budgeted cost of activities required to produce and sell products and services

A major drawback of using historical results for judging current performance is that _____.

All of the following are operating budgets except the _____.

Busted Company expects to produce 19,000 units.Beginning finished goods inventory is 2,000 units and expected sales are 18,000 units.Expected ending finished goods inventory is _____.

Allows managers to assess the predicted impacts of various alternatives before final decisions are selected

_____ budgeting is when budgets are formulated with the active participation of all affected employees

Which of the following is not a major benefit of budgeting?

Financial planning models enable managers to get answers to "what-if" questions.

A major benefit of effective budgeting is that _____.

Cheating does not include making short-run decisions to increase profits that are not in the company's best long-run interests.

Cash collections from customers include the current month's cash sales plus collections on credit sales.

Activity-based budgets are an example of functional budgeting.

A _____ gives the expected sales under a given set of conditions.

The result of decisions to create the conditions that will generate a desired level of sales

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 7: Introduction to Budgets and Preparing the Master Budget

Includes decisions to add or delete a product line or acquire buildings or equipment

A sales forecast is _____.

The first step in preparing the master budget is generally the preparation of the budgeted income statement.

Managers may lie to increase the resources allocated to their department.

Budgets that focus on the budgeted cost of activities required to produce and sell products and services

A major drawback of using historical results for judging current performance is that _____.

All of the following are operating budgets except the _____.

Busted Company expects to produce 19,000 units.Beginning finished goods inventory is 2,000 units and expected sales are 18,000 units.Expected ending finished goods inventory is _____.

Allows managers to assess the predicted impacts of various alternatives before final decisions are selected

_____ budgeting is when budgets are formulated with the active participation of all affected employees

Which of the following is not a major benefit of budgeting?

Financial planning models enable managers to get answers to "what-if" questions.

A major benefit of effective budgeting is that _____.

Cheating does not include making short-run decisions to increase profits that are not in the company's best long-run interests.

Cash collections from customers include the current month's cash sales plus collections on credit sales.

Activity-based budgets are an example of functional budgeting.

A _____ gives the expected sales under a given set of conditions.

The result of decisions to create the conditions that will generate a desired level of sales

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters