Pease Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. $\begin{array}{lr} \text { Budgeted } & \text { Expenses per Month } \\ \text { Wages } & \$ 2,000 \\ \text { Advertising } & 1,680 \\ \text { Depreciation } & 1,440 \\ \text { Rent } & 2,560 \\ \text { Other } & 5 \% \text { of sales } \end{array}$ _____ is the expected total expenses for the month of April.

A) $9,060 B) $7,680 C) $6,240 D) $7,620 A) $9,060 B) $7,680 C) $6,240 D) $7,620

Diamond Corporation has the following sales budget for the last six months of 20X0: \[\begin{array} { l r l r } \text { July } & \$ 100,000 & \text { October } & \$ 90,000 \\ \text { August } & 80,000 & \text { November } & 100,000 \\ \text { September } & 110,000 & \text { December } & 94,000 \end{array}\] Historically, the cash collection of sales has been as follows: 65% of sales collected in month of sale 25% of sales collected in month following sale 8% of sales collected in second month following sale 2% of sales are uncollectible _____ is the expected cash collection in October.

A) $58,500 B) $92,400 C) $99,500 D) None of these answers is correct A) $58,500 B) $92,400 C) $99,500 D) None of these answers is correct

Donald Company has the following information: \[\begin{array}{l} \begin{array} { l r } \text { Month Budgeted} &\text { Purchases }\\ \text { January } & \$ 30,000 \\ \text { February } & 29,000 \\ \text { March } & 30,520 \\ \text { April } & 29,480 \\ \text { May } & 27,680 \end{array} \end{array}\] Purchases are paid for in the following manner: 10% in the month of purchase 50% in the month after purchase 40% two months after purchase _____ is the estimated cash disbursement in March from January purchases.

A) $12,000 B) $13,400 C) $3,052 D) $12,208 A) $12,000 B) $13,400 C) $3,052 D) $12,208

Caravan Corporation has the following information: $\begin{array}{lr} \text { Month } & \text { Budgeted Sales } \\ {may } & \$ 46,000 \\ \text { June } & 50,000 \\ \text { July } & 52,000 \\ \text { August } & 48,000 \end{array}$ The cost of goods sold percentage is 70% and the desired inventory level is 25% of next month's sales._____ was the beginning inventory for May.

A) $8,050 B) $4,025 C) $12,075 D) None of these answers is correct A) $8,050 B) $4,025 C) $12,075 D) None of these answers is correct

Exam 7: Introduction to Budgets and Preparing the Master Budget

Pease Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. Budgeted Expenses per Month Wages \ 2,000 Advertising 1,680 Depreciation 1,440 Rent 2,560 Other 5\% of sales _____ is the expected total expenses for the month of April.

(Multiple Choice)

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Question 41

Unit sales of Product A are currently 10,000, while unit sales of Product B are double those of Product A.The com?pany's sales forecast will be _____, assuming sales of Product A increase by 10% and those of Product B increase by 4,000 units.

(Multiple Choice)

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Question 42

The operating budget is a better measure of a company's overall performance than is the financial budget.

(True/False)

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Question 43

Diamond Corporation has the following sales budget for the last six months of 20X0: July \ 100,000 October \ 90,000 August 80,000 November 100,000 September 110,000 December 94,000 Historically, the cash collection of sales has been as follows: 65% of sales collected in month of sale 25% of sales collected in month following sale 8% of sales collected in second month following sale 2% of sales are uncollectible _____ is the expected cash collection in October.

(Multiple Choice)

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Question 44

These budgets are created with the active participation of all affected employees

(Short Answer)

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Question 45

Line operating managers usually prepare and use the operating budget.

(True/False)

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Question 46

Desired ending inventory + cost of goods sold - beginning inventory

(Short Answer)

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Question 47

Managers want a very large cash balance possible at all times.

(True/False)

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Question 48

A major part of a master budget that focuses on the income statement and its supporting schedules

(Short Answer)

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Question 49

Donald Company has the following information: Month Budgeted Purchases January \ 30,000 February 29,000 March 30,520 April 29,480 May 27,680 Purchases are paid for in the following manner: 10% in the month of purchase 50% in the month after purchase 40% two months after purchase _____ is the estimated cash disbursement in March from January purchases.

(Multiple Choice)

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Question 50

The financial budgets of a nonmanufacturing company include the capital budget, the cash budget, and the budgeted balance sheet.

(True/False)

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Question 51

The beginning available cash balance equals the beginning cash balance + the minimum cash balance desired.

(True/False)

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Question 52

All of the following are financial budgets except the _____.

(Multiple Choice)

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Question 53

Another term for "What-if?" analysis

(Short Answer)

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Question 54

Examples of expenses driven by sales volume include rent and insurance.

(True/False)

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Question 55

Caravan Corporation has the following information: Month Budgeted Sales may \ 46,000 June 50,000 July 52,000 August 48,000 The cost of goods sold percentage is 70% and the desired inventory level is 25% of next month's sales._____ was the beginning inventory for May.

(Multiple Choice)

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Question 56

Leads to long-range planning but does not deal with a specific period nor does it produce forecasted financial statements

(Short Answer)

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Question 57

Falcons Company expects a total of $10,000 in sales in May Of these, $4,000 sales are expected to be for cash.Collections are 50% in the month of sale, 40% in the month following the sale, and 5% two months following the sale.The remaining 5% is expected to be uncollectible.____ is the estimated cash collection in May from May sales.

(Multiple Choice)

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Question 58

_____ budget is a major part of the master budget that focuses on the income statement and its supporting schedules.

(Multiple Choice)

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Question 59

_____ expense is influenced by sales.

(Multiple Choice)

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Question 60

Showing 41 - 60 of 148

Pease Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. Budgeted Expenses per Month Wages \ 2,000 Advertising 1,680 Depreciation 1,440 Rent 2,560 Other 5\% of sales _____ is the expected total expenses for the month of April.

Unit sales of Product A are currently 10,000, while unit sales of Product B are double those of Product A.The com?pany's sales forecast will be _____, assuming sales of Product A increase by 10% and those of Product B increase by 4,000 units.

The operating budget is a better measure of a company's overall performance than is the financial budget.

These budgets are created with the active participation of all affected employees

Line operating managers usually prepare and use the operating budget.

Desired ending inventory + cost of goods sold - beginning inventory

Managers want a very large cash balance possible at all times.

A major part of a master budget that focuses on the income statement and its supporting schedules

The financial budgets of a nonmanufacturing company include the capital budget, the cash budget, and the budgeted balance sheet.

The beginning available cash balance equals the beginning cash balance + the minimum cash balance desired.

All of the following are financial budgets except the _____.

Another term for "What-if?" analysis

Examples of expenses driven by sales volume include rent and insurance.

Caravan Corporation has the following information: Month Budgeted Sales may \ 46,000 June 50,000 July 52,000 August 48,000 The cost of goods sold percentage is 70% and the desired inventory level is 25% of next month's sales._____ was the beginning inventory for May.

Leads to long-range planning but does not deal with a specific period nor does it produce forecasted financial statements

_____ budget is a major part of the master budget that focuses on the income statement and its supporting schedules.

_____ expense is influenced by 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

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