BUS-317 TOPIC 4 DQ 2

indicate yes if it describes a potential benefit of budgeting orno if it describes a potential negative outcome of budgeting. Budgets are useful in assigning blame for unexpected results.

Think It Through: Errors in a Budgeted Balance Sheet E openstax" Which error has the potential to cause more problems with the budgeted balance sheet: overstating sales or understating the cash collected?

All of the following are necessary for budgets to be effective except Select one: a. Employees affected by a budget should be consulted when it is prepared. b. All budgeted amounts must be spent to ensure that budgets arent reduced for the next period c Coals should be challenging and attainable O d Managers must be aware of potential negative outcomes of budgeting. such as budgetary slack

Which of the following statements is false about budgeted income statement and budgeted balance sheet? O a. Credit purchases will be included in the accounts receivable in the budgeted balance sheet. O b. The cash budget must be prepared first before preparing both the budgeted income statement and the budgeted balance sheet. O c. None of the given answers. O d. The budgeted income statement must be prepared first before preparing the budgeted balance sheet. O e. The ending finished goods inventory will be included in the budgeted balance sheet. 11:34 e to search W AD 4 dx ENG 22-05-2021 12) の SEV rt se delete Tome 96 & back space Sock 8 A R T home 5 0 D enter F K pause t shift 1 B M end ait ctri

Label each item below with a “B” if it describes a benefit of budgeting or a “Not B” if it describes a potential negative outcome of budgeting.

Answer this question İn some organizations (firms, universities, government agencies), spending appears to increase as the end of the budgeting period approaches, even if there are no seasonal differences. What might cause this? (A). "Our cash budget shows a surplus for the quarter, so we do not have to think about arranging any bank financing." Comment on this statement. (B). Accrual accounting is preferable to cash flow accounting because the information is more relevant to all users of financial statements. Discuss and answer the question

Identify the inaccurate statement. O The primary objective of preparing financial plans is to estimate the future financing requirements in advance. O The cash budget contains revenue projections and expenses in the month in which they are expected to occur. O One of the key steps in the development of pro forma financial statements is to identify those assets and liabilities which increase spontaneously with net income that some, but not all, income statement and balance sheet items maintain a constant relationship with the level of sales." O "A fundamental premise of percent of sales method A Moving to another question will save this response. « < Questior

Ethical Considerations. Budget projections always involve a degree of judgment because managers can neverpredict the future with total accuracy. For instance, onemanager with an optimistic view and another with apessimistic view could look at the same set of facts andarrive at distinctly different conclusions about the company’s financial prospects. When budgets will influencedecisions made by investors or lenders, how should thepeople who prepare the budgets deal with the variancebetween optimistic and pessimistic viewpoints? On theone hand, being too pessimistic could result in lowerlevels of funding, which could be detrimental to employees, existing investors, existing creditors, and otherfinancial stakeholders. On the other hand, being toooptimistic could be detrimental to prospective investors or creditors. How do you find the right balance?

Which of the following statements is NOT correct? a. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period. b. The sales budget is constructed by multiplying the expected sales in units by the sales price. c. The sales budget is the starting point in preparing the master budget. d. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.

Which of the following is an example of a situation in which a company could use budget information to make operational changes:    Select one:  a.  Total revenues exceed projected costs.    b.  Profits are expected to rise.    c.  Accounts receivables are in order.    d.  Estimated sales exceed actual sales.

Which of the following statements is false? Select one: a. According to responsibility accounting, all managers should be held responsible for all asbects of the master budget. o b. Budgets helps uncover potential bottlenecks. c. Budgeting forces managers to think about and plan for the future. o d. One benefit of following a well-designed budgeting process is Improved performance evaluations. e. Budgeted cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Which of the following activities would be classified as a batch-level activity? Select one: a. none of the given answer. b. Designing a new product. c. Milling a part required for the final product. d. Setting up equipment. e. Training employees.

Regarding Budgets, which of the following statements is true? a. A budget is a business plan for the short term. O b. A periodic budget is prepared for a particular period of time. O c. Budgets are based on forecasts. However, the performance of a manager should be compared to a target that reflects the actual environment. O d. All the answers are true.

Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people, identify several negative aspects if budgets are not implemented properly. Additionally, please discuss in detail how the budgeting process is essential to managers.

4.-To budget the customer balance in the projected balance sheet, two procedures can be followed that are hidden in the answers, which are? A) Opening balance plus credit sales for the budgeted period minus collections made. B) Apply current turnover to the budgeted period. C) Perform an aging analysis of customer balances. D) Project sales and outstanding balances for the last "n" years. E) Perform an actuarial calculation. Note:You can choose more than one option.

4.-To budget the customer balance in the projected balance sheet, two procedures can be followed that are hidden in the answers, which are? A) Opening balance plus credit sales for the budgeted period minus collections made. B) Apply current turnover to the budgeted period. C) Perform an aging analysis of customer balances. D) Project sales and outstanding balances for the last "n" years. E) Perform an actuarial calculation. Note:You can choose more than one option. Please double check your answer.

Which of the following statements about budgeting is incorrect? a. Budgets provide direction and coordination b. Budgets motivate staff c. A budget is a financial plan. d. A budget looks back and review performance.

“Budgets are the best management tool, but I think they can cause arguments and disagreements between different budget holder.” According to this quote, discuss in detail the possible advantages of budgeting.

Please provide a brief description of the types of human behavior issues that might develop if budget targets are established too restrictively.

Budget slack is the situation in which a. there is an intentional overstatement of expenses. b. there is an intentional overstatement of revenues. c. the company is ahead of schedule in preparing the budget. d. sales are slow during certain budget periods.

Which statement about the cash budget is correct? It is also called the statement of cash flows. It can show managers when the company will experience a net loss. It can indicate when sales are insufficient. It can show managers when additional financing will be necessary.

You are in the process of creating your department's projected operating budget. As you create this budget, you realize that you are very uncertain about the volume of services you will be providing in the future. What tool(s) can you use to understand the impact of that uncertainty on your budget? O A. Ratio analysis O B. Varlance analysis O C. None of these O D. Sensitivity analysis O E. Scenario analysis