Deck 21: Prepare and Monitor Budgets

Question 1

Control systems ensure that:

A) Fraud does not occur
B) Mistakes are monitored
C) Variance is monitored
D) All financial transactions are fully documented and reported

Answer 1

D

Question 2

Gross profit is:

A) The actual profit after total expenses have been paid
B) The profit before taxes
C) The profit excluding GST
D) The profit made after deducting costs associated with providing goods and services

Answer 2

D

Question 3

Which of the following is an external factor that needs to be considered when preparing a budget?

A) Supplier availability
B) The scope of the project
C) The type of client
D) Cost of training volunteers

Answer 3

A

Question 4

Calculating the break-even point shows you:

A) How many tickets you need to sell before making a profit
B) How your cash flow will impact on the bottom line
C) What would happen if you ran the event over a longer period
D) How much tax should be paid

Question 5

Which of the following is NOT a source of income?

A) Rental for stalls
B) Parking fees
C) Commissions paid on ticket sales to a distributor
D) Merchandise sales

Question 6

If you had 400 people attending an event paying $120 per head, the income would be:

A) $48,000
B) $46,000
C) $200,000
D) $24,000

Question 7

The balance sheet:

A) Shows monthly gross profit
B) Is a statement of financial position
C) Does not include invoices to be paid
D) Does not include cash flow

Question 8

Physical assets:

A) Are liabilities
B) Are assets
C) Are items that have no value
D) Are fixtures and fittings (FFE)

Question 9

Which of the following actions is recommended for monitoring and reviewing budgets for an event project?

A) Prepare the budget in advance of giving the client a quote
B) Continually review and update the budget as planning progresses
C) Pay invoices promptly
D) Analyse economic conditions

Question 10

A budget is:

A) An end-of-year report
B) A forecast
C) A way to solve business problems after they occur
D) The basis for managing inventory