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.

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.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 1M

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Which is not a section of the cash budget? cash receipts cash disbursements allowance for uncollectible accounts financing needs
Which of the following statements is false about budgeted income statement and budgeted balance sheet ? a . The ending finished goods inventory will be included in the budgeted balance sheet . b. None of the given answers . c . The budgeted income statement must be prepared first before preparing the budgeted balance sheet . d. Credit purchases will be included in the accounts payable in the budgeted balance sheet. e. The cash budget must be prepared first before preparing both the budgeted income statement and the budgeted balance sheet.
Which of the following statements is incorrect concerning budget preparation? A. The rolling budget approach is not often used in practice because it requires that management be in perpetual budgeting mode. B. If a zero-based budgeting approach is used, the annual budgeting process begins with a review of the results of the prior operating period. C. If a participative approach is used to prepare budgets, all levels of management are involved in the budgeting process. D. The preparation of the sales budget is the starting point in the budgeting process for all companies. E. Participative budgeting increases the risk that employees will create budgetary slack.
Which of the following statements is True? a. Budget data are generally prepared by top management and distributed downward in anorganization b. The budget committee is responsible for preparing detailed budget figures in anorganization c. The primary purpose of the cash budget is to show the expected cash balance at the endof the budget period. d. Under zero-based budgeting, a manager is required to start at zero budget levels each period, as if the programs involved were being initiated for the first time
Which is not a section of the cash budget? Opening Balance Cash disbursements Allowance for Doubtful Accounts Cash receipts
Which is not a section of the cash budget? a.cash disbursements b.allowance for uncollectible accounts c.cash receipts d.financing needs
The cash budget and the budgeted statement of cash flows both provide information about cash. What information about cash is common to these two sources, and what information is unique to the two sources? Assume that in preparing the cash budget, the accountant discovers that a cash shortage will likely occur in a specific month. What actions might the accountant recommend to management to deal with the cash shortage?
The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than the industry average. the prior years. management's minimum required balance. the amount needed to avoid a service charge at the bank.
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.
Which of the following budgets are prepared before the sales budget? Budgeted Income Statement Direct Labor Budget A) Yes Yes B) Yes No C) No Yes D) No No Group of answer choices Choice A Choice B Choice C Choice D
The previous cash balance is important when beginning work on the cash budget because O The beginning cash can be used in periods of cash flow issues. We can use this number to decide what terms to offer our customers. Jm OIf we started without this information, we may show cash flow issues in error.
Which of the following items will not appear on a cash budget? A) Expected cash paymentsB) Expected credit salesC) Expected cash collectionsD) All of the above will appear on a cash budget