Question 1

Which of the following is done to improve the reliability of the sales forecast?

Accepted Answer

A) Employ financial planning models 
B) Lengthen the planning horizon to more than a year 
C) Rely solely on outside consultants 
D) Use the sales forecasts from the previous year 
A) Employ financial planning models 
B) Lengthen the planning horizon to more than a year 
C) Rely solely on outside consultants 
D) Use the sales forecasts from the previous year

Question 2

Budgeting is usually most closely associated with which management function?

Accepted Answer

A) Planning 
B) Directing 
C) Motivating 
D) Controlling 
A) Planning 
B) Directing 
C) Motivating 
D) Controlling

Question 3

Budgets are statements of management's plans stated in financial terms.

Accepted Answer

A) True 
 B)False

Question 4

Budget development for the coming year usually starts

Accepted Answer

A) a year in advance. 
B) the first month of the year to be budgeted. 
C) several months before the end of the current year. 
D) the last month of the previous year. 
A) a year in advance. 
B) the first month of the year to be budgeted. 
C) several months before the end of the current year. 
D) the last month of the previous year.

Question 5

A manufacturing overhead budget is not needed if the company develops a predeter-mined overhead rate to apply overhead.

Accepted Answer

A) True 
 B)False

Question 6

In order to develop a budgeted balance sheet, the previous year's balance sheet is needed.

Accepted Answer

A) True 
 B)False

Question 7

Financial budgets must be completed before the operating budgets can be prepared.

Accepted Answer

A) True 
 B)False

Question 8

Off-Line Co.has 9,000 units in beginning finished goods.The sales budget shows expected sales to be 36,000 units.If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?

Accepted Answer

A) 3,000. 
B) 9,000. 
C) 15,000. 
D) 27,000. 
A) 3,000. 
B) 9,000. 
C) 15,000. 
D) 27,000.

Question 9

The responsibility for expressing management's budgeting goals in financial terms is performed by the

Accepted Answer

A) accounting department. 
B) top management. 
C) lower level of management. 
D) budget committee. 
A) accounting department. 
B) top management. 
C) lower level of management. 
D) budget committee.

Question 10

The budget committee would not normally include the

Accepted Answer

A) research director. 
B) treasurer. 
C) sales manager. 
D) external auditor. 
A) research director. 
B) treasurer. 
C) sales manager. 
D) external auditor.

Question 11

Budgeting and long-range planning are two terms that describe the same process.

Accepted Answer

A) True 
 B)False

Question 12

What is the proper preparation sequencing of the following budgets?
1.	Budgeted Balance Sheet
2.	Sales Budget
3.	Selling and Administrative Budget
4.	Budgeted Income Statement

Accepted Answer

A) 1, 2, 3, 4 
B) 2, 3, 1, 4 
C) 2, 3, 4, 1 
D) 2, 4, 1, 3 
A) 1, 2, 3, 4 
B) 2, 3, 1, 4 
C) 2, 3, 4, 1 
D) 2, 4, 1, 3

Question 13

The projection of financial position at the end of the budget period is found on the

Accepted Answer

A) budgeted income statement. 
B) cash budget. 
C) budgeted balance sheet. 
D) sales budget. 
A) budgeted income statement. 
B) cash budget. 
C) budgeted balance sheet. 
D) sales budget.

Question 14

Correy Inc.reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\
\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \
\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000
\end{array}$ All sales are on credit. 
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
-Cost of goods sold is 35% of sales.
-Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
-Accounts payable is used only for inventory acquisitions.
How much cash will Correy receive during November?

Accepted Answer

A) $220,000 
B) $490,000 
C) $450,000 
D) $440,000 
A) $220,000 
B) $490,000 
C) $450,000 
D) $440,000

Question 15

Which of the following expenses would not appear on a selling and administrative expense budget?

Accepted Answer

A) Sales commissions 
B) Depreciation 
C) Property taxes 
D) Indirect labor 
A) Sales commissions 
B) Depreciation 
C) Property taxes 
D) Indirect labor

Question 16

In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to

Accepted Answer

A) desired ending direct materials. 
B) beginning direct materials. 
C) desired ending direct materials less beginning direct materials. 
D) beginning direct materials less desired ending direct materials. 
A) desired ending direct materials. 
B) beginning direct materials. 
C) desired ending direct materials less beginning direct materials. 
D) beginning direct materials less desired ending direct materials.

Question 17

Which is true of budgets?

Accepted Answer

A) They are voted on and approved by stockholders. 
B) They are used in the planning, but not in the control, process. 
C) There is a standard form and structure for budgets. 
D) They are used in performance evaluation. 
A) They are voted on and approved by stockholders. 
B) They are used in the planning, but not in the control, process. 
C) There is a standard form and structure for budgets. 
D) They are used in performance evaluation.

Which of the following is done to improve the reliability of the sales forecast?

Budgeting is usually most closely associated with which management function?

Budgets are statements of management's plans stated in financial terms.

Budget development for the coming year usually starts

A manufacturing overhead budget is not needed if the company develops a predeter-mined overhead rate to apply overhead.

In order to develop a budgeted balance sheet, the previous year's balance sheet is needed.

Financial budgets must be completed before the operating budgets can be prepared.

Off-Line Co.has 9,000 units in beginning finished goods.The sales budget shows expected sales to be 36,000 units.If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?

The responsibility for expressing management's budgeting goals in financial terms is performed by the

The budget committee would not normally include the

Budgeting and long-range planning are two terms that describe the same process.

What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Administrative Budget 4. Budgeted Income Statement

The projection of financial position at the end of the budget period is found on the

Which of the following expenses would not appear on a selling and administrative expense budget?

In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to

Which is true of budgets?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

Filters

Exam 9: Reporting and Analyzing Long-Lived Assets

Which of the following is done to improve the reliability of the sales forecast?

Budgeting is usually most closely associated with which management function?

Budgets are statements of management's plans stated in financial terms.

Budget development for the coming year usually starts

A manufacturing overhead budget is not needed if the company develops a predeter-mined overhead rate to apply overhead.

In order to develop a budgeted balance sheet, the previous year's balance sheet is needed.

Financial budgets must be completed before the operating budgets can be prepared.

Off-Line Co.has 9,000 units in beginning finished goods.The sales budget shows expected sales to be 36,000 units.If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?

The responsibility for expressing management's budgeting goals in financial terms is performed by the

The budget committee would not normally include the

Budgeting and long-range planning are two terms that describe the same process.

What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Administrative Budget 4. Budgeted Income Statement

The projection of financial position at the end of the budget period is found on the

Which of the following expenses would not appear on a selling and administrative expense budget?

In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to

Which is true of budgets?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

Filters