?Which of the following statements is false about budgeted income statement and budgeted balance sheet The cash budget must be prepared first before preparing both the budgeted income statement and the a O budgeted balance sheet The budgeted income statement must be prepared first before preparing the budgeted balance sheet b O The ending finished goods inventory will be included in the budgeted balance sheet c O Credit purchases will be included in the accounts receivable In the budgeted balance sheet d O None of the given answers .e O

?Which of the following statements is false about budgeted income statement and budgeted balance sheet The cash budget must be prepared first before preparing both the budgeted income statement and the a O budgeted balance sheet The budgeted income statement must be prepared first before preparing the budgeted balance sheet b O The ending finished goods inventory will be included in the budgeted balance sheet c O Credit purchases will be included in the accounts receivable In the budgeted balance sheet d O None of the given answers .e O

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9Q: A company has prepared the operating budget and the cash budget. It is now preparing the budgeted...

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A company has prepared the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Identify the document that contains each of these balances. A. cash B. accounts receivable C. finished goods inventory D. accounts payable E. equipment purchases
Which of the operating budgets is prepared first? A. production budget B. sales budget C. cash received budget D. cash payments budget
Which of the following describes the order in which the four types of budgets must be prepared? a. Production, sales, direct materials purchases, cash received on account b. Sales, production, direct materials purchases, cash budget c. Cash receipts, direct labor, production, sales d. Sales, direct materials purchases, production, cash disbursements
Select the one budget below that is not an operating budget. a. Cost of goods sold budget b. Cash budget c. Production budget d. Overhead budget e. All of these.
Which of the following is true in a bottom-up budgeting approach? Every expense needs to be justified. Supervisors tell departments their budget amount and the departments are free to work within those amounts. Departments budget their needs however they see fit. Departments determine their needs and relate them to the overall goals.
The first step in preparing the sales budget is to a. prepare a sales forecast. b. review the production budget carefully. c. assess the desired ending inventory of finished goods. d. talk with past customers. e. increase sales beyond the forecast level.
The percentage of accounts receivable that is uncollectible can be ignored for cash budgeting because a. no cash is received from an account that defaults. b. it is included in cash sales. c. it appears on the budgeted income statement. d. for most companies, it is not a material amount. e. None of these.
Which of the following is not an operating budget? A. sales budget B. production budget C. direct labor budget D. cash budget
Explain zero-based budgeting and how it differs from the traditional approach to preparing next years budget.
Suppose that the vice president of sales is a particularly pessimistic individual. If you were in charge of developing the master budget, how, if at all, would you be influenced by this knowledge?
Which approach is most likely to result in employee buy-in to the budget? A. top-down approach B. bottom-up approach C. total participation approach D. basing the budget on the prior year
Explain the role of a sales forecast in budgeting. What is the difference between a sales forecast and a sales budget?