Matching
Several terms related to budgeting and accompanying definitions are listed below. Match each term with the definition that best describes it. The items in each list may be used only once.
Premises:
Combines financial and operating budgets
Management's plan for revenues, production and operating costs
Intentionally understating revenue targets and overstating cost targets
Plans and predictions about next period's operating activities
Differences in actual and expected revenues, when expected revenues are greater
Contains receipts, disbursements and short-term borrowings or investments
Formalized financial plan for future operations
Management's plans for capital expenditures, long-term financing and cash flows
Series of steps organizations follow to develop and use budgets
Actual costs minus expected costs, when actual costs are less
Responses:
Operating budget
Budgetary slack
Favourable variance
Budget assumptions
Financial budget
Master budget
Budget
Budget cycle
Unfavourablevariance
Cash budget
Correct Answer:
Premises:
Responses:
Combines financial and operating budgets
Management's plan for revenues, production and operating costs
Intentionally understating revenue targets and overstating cost targets
Plans and predictions about next period's operating activities
Differences in actual and expected revenues, when expected revenues are greater
Contains receipts, disbursements and short-term borrowings or investments
Formalized financial plan for future operations
Management's plans for capital expenditures, long-term financing and cash flows
Series of steps organizations follow to develop and use budgets
Actual costs minus expected costs, when actual costs are less
Premises:
Combines financial and operating budgets
Management's plan for revenues, production and operating costs
Intentionally understating revenue targets and overstating cost targets
Plans and predictions about next period's operating activities
Differences in actual and expected revenues, when expected revenues are greater
Contains receipts, disbursements and short-term borrowings or investments
Formalized financial plan for future operations
Management's plans for capital expenditures, long-term financing and cash flows
Series of steps organizations follow to develop and use budgets
Actual costs minus expected costs, when actual costs are less
Responses:
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