Question 1

The sales budget is the responsibility of line management.

Accepted Answer

A) True 
 B)False

Question 2

The following sales budget has been prepared: $\begin{array}{lrr}
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\hline \text { September } & \$ 123,000 & \$ 210,000 \
\text { October } & 140,000 & 180,000 \
\text { November } & 167,000 & 260,000 \
\text { December } & 189,000 & 190,000
\end{array}$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the estimated cash collection in October from October sales

Accepted Answer

A) $230,000 
B) $125,000 
C) $310,000 
D) None of these answers is correct 
A) $230,000 
B) $125,000 
C) $310,000 
D) None of these answers is correct

Question 3

Voyager Corporation has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Sales } \
\hline  \text { May } & \$ 46,000 \
\text { June } & 50,000 \
\text { July } & 52,000 \
\text { August } & 48,000
\end{array}$ The cost of goods sold percentage is 80% and the desired inventory level is 25% of next month's sales._____ is the desired beginning inventory for August.

Accepted Answer

A) $9,600 
B) $8,450 
C) $4,200 
D) None of these answers is correct 
A) $9,600 
B) $8,450 
C) $4,200 
D) None of these answers is correct

Question 4

The following sales budget has been prepared: $$\begin{array} { l r r } 
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\hline \text { September } & \$ 100,000 & \$ 200,000 \
\text { October } & 125,000 & 180,000 \
\text { November } & 207,000 & 199,000 \
\text { December } & 67,000 & 144,000
\end{array}$$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the expected balance of Accounts Receivable as of October 31.

Accepted Answer

A) $110,000 
B) $180,000 
C) $118,000 
D) $72,500 
A) $110,000 
B) $180,000 
C) $118,000 
D) $72,500

Question 5

Atlanta Company expects a total of $20,000 sales in June.Of these, credit sales are expected to be $12,000.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 June from June sales.

Accepted Answer

A) $14,000 
B) $20,000 
C) $17,200 
D) $9,200 
A) $14,000 
B) $20,000 
C) $17,200 
D) $9,200

Question 6

Another term for forecasted financial statement

Accepted Answer

Pro forma

Question 7

Leno Company has gathered the following information: $$\begin{array} { l r } 
\text { June } 31 \text { ending cash bal ance } & \$ 80,000 \
\text { Depreciation expense for July } & \$ 12,000 \
\text { Dividends paid in July } & \$ 55,000 \
\text { Cash collections in July } & \$ 510,000 \
\text { Equipment purchase for cash in July } & \$ 94,500 \
\text { Cash paid for operating expenses in July } & \$ 185,500 \
\text { Merchandise paid for in July } & \$ 180,000
\end{array}$$ Leno Company requires a minimum cash balance of $80,000.
Required:
Prepare a cash budgetfor July, and comment on whether or not minimum cash balance requirements are met.

Accepted Answer

Minimum cash balance requireme

Question 8

Includes the operating budget and the financial budget

Accepted Answer

The answer of Includes the operating budget and the financial...

The sales budget is the responsibility of line management.

Voyager 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 80% and the desired inventory level is 25% of next month's sales._____ is the desired beginning inventory for August.

Another term for forecasted financial statement

Includes the operating budget and the financial budget

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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Exam 7: Introduction to Budgets and Preparing the Master Budget

The sales budget is the responsibility of line management.

Voyager 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 80% and the desired inventory level is 25% of next month's sales._____ is the desired beginning inventory for August.

Another term for forecasted financial statement

Includes the operating budget and the financial budget

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