Question 1

Long-term liability balances for the budgeted balance sheet are obtained from:

Accepted Answer

A) The cash budget and capital expenditures budget. 
B) The cash budget and sales budget. 
C) The cash budget and budgeted income statement. 
D) The sales budget and production budget. 
E) The asset budget and debt budget. 
A) The cash budget and capital expenditures budget. 
B) The cash budget and sales budget. 
C) The cash budget and budgeted income statement. 
D) The sales budget and production budget. 
E) The asset budget and debt budget.

Question 2

Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31.Its gross profit rate is 20% of sales,and its September 30 inventory is $32,500.If the December 31 inventory is targeted at $41,500,budgeted purchases for this quarter should be:

Accepted Answer

A) $134,000. 
B) $109,000. 
C) $91,500. 
D) $25,000. 
E) $91,000. 
A) $134,000. 
B) $109,000. 
C) $91,500. 
D) $25,000. 
E) $91,000.

Question 3

Bioclean Co.,a merchandiser,sells a biodegradable cleaning product and has predicted the following unit sales for the first four months of the current year:   Ending inventory for each month should be 20% of the next month's sales,and the December 31 inventory is consistent with that policy.How many units should be purchased in February?

Accepted Answer

A) 2,000. 
B) 2,420. 
C) 2,020. 
D) 1,600. 
E) 2,820. 
A) 2,000. 
B) 2,420. 
C) 2,020. 
D) 1,600. 
E) 2,820.

Question 4

________ is a budgeting guideline that recognizes employees affected by a budget should be involved in preparing it.

Accepted Answer

Participat

Question 5

There are at least five benefits from budgeting.Identify two of these benefits:
(1)________
(2)________

Accepted Answer

promotes analysis and focus on the futur

Question 6

Use the following data to determine the company's cash payments for August and September:

Accepted Answer

The answer of Use the following data to determine the...

Question 7

Ewing Company budgeted sales for January,February,and March of $96,000,$88,000,and $72,000,respectively.Seventy percent of sales are on credit.The company collects 60% of its credit sales in the month following sale,and 40% in the second month following sale.What are Ewing's expected cash receipts for March related to its current and past sales?

Accepted Answer

The answer of Ewing Company budgeted sales for January,February,and March...

Question 8

Use the following information to prepare a budgeted income statement for Stellar Company for the month of June.
a.Beginning cash balance on June 1 is $52,000.
b.Sales amounts are: April (actual),$1,450,000,May (actual),$1,600,000,and June (budgeted),$1,700,000.
c.Cost of goods sold is 53% of sales.
d.Budgeted cash payments for salaries in June: $260,000.Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.
e.Budgeted depreciation expense for June: $24,000.
f.Other cash expenses budgeted for June: $282,000.
g.Accrued income taxes due in June: $48,000.
h.Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.
i.The income tax rate applicable to the company is 30%.

Accepted Answer

The answer of Use the following information to prepare a...

Question 9

Match between columns
                        Premises: A formal,comprehensive plan for a company's future that includes several individual budgets that are linked with each other to form a coordinated plan.
A plan that shows the expected sales units and the dollars from these sales.
A managerial accounting report that shows predicted amounts of sales and expenses for the budget period.
A managerial accounting report that shows predicted amounts of the company's assets,liabilities,and balances as of the end of the budget period.
A formal statement of a company's future plans,usually expressed in monetary terms.
A plan that shows the units and dollars of merchandise to be purchased during the budget period.
A quantity of inventory that provides protection against lost sales caused by unfulfilled demand from customers or delays in shipments from suppliers.
A plan that shows the expected cash inflows and cash outflows during the budget period.
A plan that plans the predicted operating expenses not included in the selling expenses or manufacturing budgets.

Accepted Answer

The Answer of Budget and Budgeted income statement and Cash is...

Question 10

A cash budget shows the expected cash receipts and cash payments during the budget period.

Accepted Answer

A) True 
 B)False

Question 11

What is a sales budget? How is the sales budget prepared?

Accepted Answer

The sales budget shows planned sales uni

Question 12

Masterson Company's budgeted production calls for 56,000 units in April and 52,000 units in May of a key raw material that costs $1.85 per unit.Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials.The April 1 inventory for this material is 16,800 unit.What is the budgeted materials needed in units for April?

Accepted Answer

A) 71,600 units. 
B) 39,200 units. 
C) 57,600 units. 
D) 56,000 units. 
E) 54,800 units. 
A) 71,600 units. 
B) 39,200 units. 
C) 57,600 units. 
D) 56,000 units. 
E) 54,800 units.

Question 13

Bengal Co.provides the following unit sales forecast for the next three months:  
The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales.Finished goods inventory on June 30 is 1,250 units.
-The budgeted production units for August are:

Accepted Answer

A) 6,950 units. 
B) 4,310 units. 
C) 7,090 units. 
D) 5,665 units. 
E) 4,135 units. 
A) 6,950 units. 
B) 4,310 units. 
C) 7,090 units. 
D) 5,665 units. 
E) 4,135 units.

Question 14

Southland Company is preparing a cash budget for August.The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash payments during August.Southland Company wants to maintain a minimum cash balance of $10,000.The preliminary cash balance at the end of August before any loan activity is:

Accepted Answer

A) $13,300. 
B) $137,800. 
C) ($13,700). 
D) $3,300. 
E) $27,000. 
A) $13,300. 
B) $137,800. 
C) ($13,700). 
D) $3,300. 
E) $27,000.

Question 15

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August.The direct materials requirement per unit is 2 ounces (oz.).The company requires to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month.There was 3,160 ounces of direct material in inventory at the start of July.The total ounces of direct materials to be purchased in July is:

Accepted Answer

A) 15,800 oz. 
B) 16,200 oz. 
C) 19,040 oz. 
D) 15,880 oz. 
E) 15,720 oz. 
A) 15,800 oz. 
B) 16,200 oz. 
C) 19,040 oz. 
D) 15,880 oz. 
E) 15,720 oz.

Question 16

The budgeted balance sheet is prepared primarily from data contained in the previously prepared components of the master budget.

Accepted Answer

A) True 
 B)False

Question 17

Match the definitions 1 through 9 with the correct term or phrase (a)through (i).

-A managerial accounting report that shows predicted amounts of the company's assets,liabilities,and balances as of the end of the budget period.

Accepted Answer

A) Master budget 
B) General and administrative expense budget 
C) Budget 
D) Safety stock 
E) Budgeted income statement
F)Budgeted balance sheet
G)Sales budget
H)Cash budget
I)Merchandise purchases budget 
A) Master budget 
B) General and administrative expense budget 
C) Budget 
D) Safety stock 
E) Budgeted income statement
F)Budgeted balance sheet
G)Sales budget
H)Cash budget
I)Merchandise purchases budget

Question 18

Production budgets always show both budgeted units of product and total costs for the budgeted units.

Accepted Answer

A) True 
 B)False

Question 19

The budget that lists the dollar amounts to be both received from plant asset disposals and spent to purchase additional plant assets to carry out the budgeted business activities is the ________.

Accepted Answer

capital ex

Question 20

Activity-based budgeting is a budget system based on expected activities and their levels for the budget period,which helps management plan for the resources required.

Accepted Answer

A) True 
 B)False

Long-term liability balances for the budgeted balance sheet are obtained from:

Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31.Its gross profit rate is 20% of sales,and its September 30 inventory is $32,500.If the December 31 inventory is targeted at $41,500,budgeted purchases for this quarter should be:

________ is a budgeting guideline that recognizes employees affected by a budget should be involved in preparing it.

There are at least five benefits from budgeting.Identify two of these benefits: (1) (2)

Use the following data to determine the company's cash payments for August and September:

A cash budget shows the expected cash receipts and cash payments during the budget period.

What is a sales budget? How is the sales budget prepared?

Bengal Co.provides the following unit sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales.Finished goods inventory on June 30 is 1,250 units. -The budgeted production units for August are:

The budgeted balance sheet is prepared primarily from data contained in the previously prepared components of the master budget.

Match the definitions 1 through 9 with the correct term or phrase (a)through (i). -A managerial accounting report that shows predicted amounts of the company's assets,liabilities,and balances as of the end of the budget period.

Production budgets always show both budgeted units of product and total costs for the budgeted units.

The budget that lists the dollar amounts to be both received from plant asset disposals and spent to purchase additional plant assets to carry out the budgeted business activities is the ________.

Activity-based budgeting is a budget system based on expected activities and their levels for the budget period,which helps management plan for the resources required.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters

Exam 20: Master Budgets and Performance Planning

Long-term liability balances for the budgeted balance sheet are obtained from:

Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31.Its gross profit rate is 20% of sales,and its September 30 inventory is $32,500.If the December 31 inventory is targeted at $41,500,budgeted purchases for this quarter should be:

________ is a budgeting guideline that recognizes employees affected by a budget should be involved in preparing it.

There are at least five benefits from budgeting.Identify two of these benefits: (1)________ (2)________

Use the following data to determine the company's cash payments for August and September:

A cash budget shows the expected cash receipts and cash payments during the budget period.

What is a sales budget? How is the sales budget prepared?

Bengal Co.provides the following unit sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales.Finished goods inventory on June 30 is 1,250 units. -The budgeted production units for August are:

The budgeted balance sheet is prepared primarily from data contained in the previously prepared components of the master budget.

Match the definitions 1 through 9 with the correct term or phrase (a)through (i). -A managerial accounting report that shows predicted amounts of the company's assets,liabilities,and balances as of the end of the budget period.

Production budgets always show both budgeted units of product and total costs for the budgeted units.

The budget that lists the dollar amounts to be both received from plant asset disposals and spent to purchase additional plant assets to carry out the budgeted business activities is the ________.

Activity-based budgeting is a budget system based on expected activities and their levels for the budget period,which helps management plan for the resources required.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters

There are at least five benefits from budgeting.Identify two of these benefits: (1) (2)