ACCT 212 - Chapter 7 Read and Interact

true and false a. Developing a budget is a critical step in planning any economic activity. This is true for businesses, for governmental agencies, and for individuals. (……….) b. The sales budget shows the projected sales in units and the total expected sales revenue. (……….)

An accounting statement that presents predicted amounts of the company's assets, liabilities, and stockholders' equity as of the end of the budget period is called a(n): Multiple Choice   Budgeted income statement.   Pro forma cash flow statement.   Master balance sheet.   Pro forma balance sheet.   Operating balance sheet.

A company can expect to receive which of the following benefits when it starts its budgeting process? a. The budget provides managers with a benchmark against which to compare actual results for performance evaluation. b. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur. c. The budget helps motivate employees to achieve sales growth and cost-reduction goals. d. All of the above

In finance, what is the main purpose of a budget? a)Todetermine theamount of debt acompany cantake on b) To plan and control financial resources c) To measure employee productivity d) To set sales targets for a company

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Zero-based budgeting refers to: a. Budgeting from the ground up as though the budget process were being initiated for the first time b. Using prior year’s budget as a bas year and adjusting it based on the experiences of the prior year and the expectations for the coming year c. Budgeting for cash inflows and outflows to time investments and borrowings in a way to maintain bank account with a minimum balance d. Developing budgeted costs from clear-cut measured relationships between inputs and outputs Clear my choice

Provide a letter of advice:• discuss the key results of the income statement and cash budget• make one suggestion on how the client could improve the financial success of the cost management strategy• identify and discuss one non-financial factor that might affect the client’s decision to proceed with the chosen proposal• clearly state whether the client should proceed with the chosen proposal and why

A company's expected receipts from sales and planned disbursements to pay bills is commonly called a:   Select one: a. Cash budget. b. Pro-forma budget. c. Master budget. d. Financial budget.

I have a finance team at work. As the year progresses, they need to maintain a record of cash flow and expenditure. What will they be required to do as a first step to building a budget? Question 1Select one: A. Find out the balance sheet of the company B. Find the profit and loss for the previous year C. Identify the expenditure and demand along with the cash flow of the company D. Build an income and expenditure statement Incorrect

Budgeting types Consider the following budgets and budget types. Which budget or budget type should be used to meet the following needs? a. Upper management is planning for the next five years. b. A store manager wants to plan for different levels of sales. c. The accountant wants to determine if the company will have sufficient funds to pay expenses. d. The CEO wants to make companywide plans for the next year.

What is a good response to: "What do you think are the key components of a successful budgeting process within an organization? Are there any specific challenges that organizations may commonly face when implementing a budget?" The budget should align with the organization's strategic goals and objectives. Understanding what the organization aims to achieve in the short and long term is crucial for creating a budget that supports these goals. Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound to ensure clarity and focus. Reviewing past financial performance helps in understanding trends, cost drivers, and revenue patterns. This historical data is crucial for making informed assumptions. Also, Establishing realistic assumptions about revenues, costs, market conditions, and economic factors is essential. Accurate forecasting techniques help predict future financial performance .A successful budgeting process requires a balanced approach that combines…

Which budget activity at the start of each year is set as "zero"?Select one:a. Incremental Budgetingb. Zero based budgetingc. Activity based budgetingd. Base budgeting

You are in charge of preparing a comprehensive budget for your firm. Indicate how financial ratios can help determine an acceptable comprehensive budget.

The final step in the budgeting process is to draw up the budgeted statement of financial position at the end of the budgeted period. This statement summarizes the assets and liabilities of an entity at the end of an accounting period whether actual or budgeted. A snapshot of an entity financial situation. We have looked at all the numbers that will go into Bud's statement of financial position when we prepared the budgeted income statement and budgeted cash flow forecast. Now, it is time to indicate all of these in the final balance sheet. Non-current asset Machinery and tools Insurance prepayment Rates prepayment Cash at bank Total current assets Total assets From the above information, can you produce the budgeted statement of financial position? Current liabilities Trade payables for wood Budgeting.

Describe the 5 types of budgets listed for these Wk 3 Financial Exercises: Problem Set 2, Part 1. In your descriptions, include the budget's objective, how the budget assists an organization in managing its financial activities, and what types of data need to be included in that specific budget. Type of Budget Cash Flow Operating Sales Static Financial Description Insert cash flow description. Insert operating description. Insert sales description. Insert static description. Insert financial description.

Which of the following budgets will show the expected cash receipts and expected cash disbursements of the firm? * budgeted balance sheet cost of goods sold budget budgeted income statement O cash budget Working capital is the total current assets and current liabilities * True False It is the cost of ordering raw materials. Your answer

A master budget: choose one Is an integrated set of budgets consisting of budgets related to operating , investing , and financing activities . Begins with the development of next year's cash budget . Is a single, large budget for all the expected future cash flows of the company . Is the company's five- year plan for financing and investing activities .

When gathering financial information, the entrepreneur should develop a budget that includes expected sales and expense figures for the first year. True or false

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Which of the following statements is/correct regarding the Cash Budget? I. The cash budget is a statement of a firm's planned inflows and outflows of cash that is used to estimate its long-term cash requirement. II. Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS). III. A cash budget gives the financial manager a clear view of the timing of a firm's expected profitability over a given period. IV. Since depreciation and other noncash charges represent a scheduled write-off of an earlier cash outflow, they should not be included in the cash budget, though depreciation charges will affect the taxes that a firm pays. a. II and III b. I and IV c. IV only d. I only

A cash flow budget can be used to   A.    estimate when and how much money will need to be borrowed                   during the year     B.    estimate when and how much debt can be repaid during the year   C.    estimate when excess cash may be available so plans can be made to           invest it    D.   all of the above

Help me answer Nos. 2-5 only please tutors. Thank you