Which of the following items would have to be included for a company preparing a schedule of cash receipts and disbursements for the calendar year 2015?
Question 40. The difference between fixed cost and variable cost has significance in preparation of (A) Flexible budget (B) Master budget (C) Cash budget (D) Capital expenditure budget Answer: (A) Flexible budget
Question 41. (A) The annual depreciation for the year 2015. (B) Purchase order issued in . (C) Dividends to shareholders of record as of (D) Funds borrowed from a bank on a note payable taken out in with an agreement to pay the principal and all of the interest owed in .
Question 42. The budget schedule that would provide the necessary input data for the direct labour budget would be the: (A) Sales forecast (B) Raw materials purchases budget (C) Schedule of cash receipts and disbursements (D) Production budget Answer: (D) Production budget
Answer: (D) Funds borrowed from a bank on a note payable taken out in with an agreement to pay the principal and all of the interest owed in
Question 43. In a not-for-profit service firm, the sales budget is replaced by: (A) The production budget (B) A budget that identifies the various expenses (C) A budget that identifies the various services and the associated funds assigned to them (D) None of the above Answer: (C) A budget that identifies the various services and the associated funds assigned to them
Question 44. Which of the following budgets would not be present for both for-profit and not- for-profit service organizations? (A) Sales budget (B) Budgeted income statement (C) Budgeted balance sheet (D) Finished goods budget Answer: (D) Finished goods budget
Question 45. In a for-profit service firm, the sales budget is also the: (A) Merchandise purchase budget (B) Production budget (C) Direct materials budget (D) Overhead budget Answer: (B) Production budget
Question 46. Budgetary control helps the management in………….. (A) Planning only (B) Control only (C) Planning and control (D) Directing Answer: (C) Planning and control
Question 47. The priorities in functional budget are determined by ……….. (A) Cash resources only (B) Human resources only (C) Principle budget factor (D) None of the above Answer: (C) Principle budget factor
Question 48. The budget designed to furnish budgeted cost any level of activity actual attained is called …………… (A) Zero base budget (B) Fixed budget (C) Flexible budget (D) Budget manual Answer: (C) Flexible budget
Question 49. Which of the following statement(s) is/are false? (A) Budget reports comparing actual results with planned objectives should be prepared only once a year. (B) Certain budget reports are prepared monthly whereas others are prepared more frequently depending on the activities being monitored. (C) A static budget is one that is geared to one level of activity. (D) All of the above Answer: (A) Budget reports comparing actual results with planned objectives should be prepared only once a year.
Question 50. Which of the following statement(s) is/are true? (A) The master budget is not used in the budgetary control process. (B) A master budget is most useful in evaluating a manager1’s performance in controlling costs. (C) A flexible budget can be prepared for each of the types of budgets included in the master budget. (D) All of the above Answer: (C) A flexible budget can be prepared for each of the types of budgets included in the master budget.
Question 51. Which of the following statement(s) is/are false? (A) A flexible budget is a series of static budgets at different levels of activities. (B) Flexible budgeting relies on the assumption that unit variable costs like it will remain constant within the relevant range of activity. (C) The activity index used in preparing a flexible budget should not influence the variable costs that are being budgeted. (D) All of the above Answer: (C) The activity index used in preparing a flexible budget should not influence the variable costs that are being budgeted.
