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Teacherbot 12 Jan, 11:10:53

  1. Which of the following is not a component of the master budget? a) Sales budget b) Production budget c) Cash budget d) Cost of goods sold budget Answer: d) Cost of goods sold budget

  2. The master budget is typically prepared for a period of: a) One month b) One quarter c) One year d) It can vary depending on the company’s needs Answer: d) It can vary depending on the company’s needs

  3. The sales budget is based on: a) Historical sales data b) Market research and sales forecasts c) The company’s desired sales target d) The previous year’s sales budget Answer: b) Market research and sales forecasts

  4. The production budget is based on: a) The sales budget b) The company’s desired production target c) The previous year’s production budget d) The cost of goods sold budget Answer: a) The sales budget

  5. The cash budget helps to determine: a) The company’s sales target b) The company’s production target c) The company’s cash inflows and outflows d) The company’s cost of goods sold Answer: c) The company’s cash inflows and outflows

  6. The budgeted income statement is prepared using information from: a) The sales budget and production budget b) The cash budget and cost of goods sold budget c) The sales budget and cost of goods sold budget d) The production budget and cash budget Answer: c) The sales budget and cost of goods sold budget

  7. The budgeted balance sheet is prepared using information from: a) The sales budget and production budget b) The cash budget and cost of goods sold budget c) The sales budget and cost of goods sold budget d) The production budget and cash budget Answer: b) The cash budget and cost of goods sold budget

  8. The budgeted cash flow statement is prepared using information from: a) The sales budget and production budget b) The cash budget and cost of goods sold budget c) The sales budget and cost of goods sold budget d) The production budget and cash budget Answer: b) The cash budget and cost of goods sold budget

  9. The budgeted balance sheet shows: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: d) The company’s projected assets, liabilities, and equity

  10. The budgeted income statement shows: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: b) The company’s projected expenses

  11. The budgeted cash flow statement shows: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: c) The company’s projected cash inflows and outflows

  12. The flexible budget is used to: a) Compare actual results to budgeted results b) Determine the company’s desired sales target c) Prepare the cash budget d) Determine the company’s production target Answer: a) Compare actual results to budgeted results

  13. The static budget is prepared for: a) A specific level of activity b) Varying levels of activity c) The entire budget period d) The previous year’s activity level Answer: a) A specific level of activity

  14. The flexible budget adjusts for changes in: a) Sales volume b) Sales price c) Variable costs per unit d) All of the above Answer: d) All of the above

  15. The variance between actual results and budgeted results can be analyzed using: a) The sales budget b) The production budget c) The cost of goods sold budget d) The variance analysis report Answer: d) The variance analysis report

  16. A favorable variance indicates that: a) Actual results are better than budgeted results b) Actual results are worse than budgeted results c) Actual results are equal to budgeted results d) None of the above Answer: a) Actual results are better than budgeted results

  17. An unfavorable variance indicates that: a) Actual results are better than budgeted results b) Actual results are worse than budgeted results c) Actual results are equal to budgeted results d) None of the above Answer: b) Actual results are worse than budgeted results

  18. The direct materials budget includes: a) The quantity of direct materials needed for production b) The cost of direct materials needed for production c) Both a) and b) d) None of the above Answer: c) Both a) and b)

  19. The direct labor budget includes: a) The quantity of direct labor needed for production b) The cost of direct labor needed for production c) Both a) and b) d) None of the above Answer: c) Both a) and b)

  20. The manufacturing overhead budget includes: a) The quantity of manufacturing overhead needed for production b) The cost of manufacturing overhead needed for production c) Both a) and b) d) None of the above Answer: c) Both a) and b)

  21. The selling and administrative expense budget includes: a) The quantity of selling and administrative expenses b) The cost of selling and administrative expenses c) Both a) and b) d) None of the above Answer: b) The cost of selling and administrative expenses

  22. The cash budget includes: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: c) The company’s projected cash inflows and outflows

  23. The budgeted income statement includes: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: b) The company’s projected expenses

  24. The budgeted balance sheet includes: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: d) The company’s projected assets, liabilities, and equity

  25. The budgeted cash flow statement includes: a) The company’s projected sales revenue b) The company’s projected expenses c) The company’s projected cash inflows and outflows d) The company’s projected assets, liabilities, and equity Answer: c) The company’s projected cash inflows and outflows

  26. The master budget is typically prepared by: a) The CEO b) The CFO c) The budget committee d) The accounting department Answer: c) The budget committee

  27. The master budget is approved by: a) The CEO b) The CFO c) The budget committee d) The accounting department Answer: a) The CEO

  28. The master budget is used for: a) Planning and control purposes b) Financial reporting purposes c) Tax reporting purposes d) All of the above Answer: a) Planning and control purposes

  29. The master budget is typically prepared on a: a) Monthly basis b) Quarterly basis c) Annual basis d) It can vary depending on the company’s needs Answer: d) It can vary depending on the company’s needs

  30. The master budget is based on: a) Historical data b) Market research and sales forecasts c) The company’s desired targets d) The previous year’s budget Answer: b) Market research and sales forecasts

  31. The sales budget is used to determine: a) The company’s sales revenue b) The company’s production target c) The company’s cash inflows and outflows d) The company’s cost of goods sold Answer: a) The company’s sales revenue

  32. The production budget is used to determine: a) The company’s sales revenue b) The company’s production target c) The company’s cash inflows and outflows d) The company’s cost of goods sold Answer: b) The company’s production target

  33. The cash budget is used to determine: a) The company’s sales revenue b) The company’s production target c) The company’s cash inflows and outflows d) The company’s cost of goods sold Answer: c) The company’s cash inflows and outflows

  34. The cost of goods sold budget is used to determine: a) The company’s sales revenue b) The company’s production target c) The company’s cash inflows and outflows d) The company’s cost of goods sold Answer: d) The company’s cost of goods sold

  35. The budgeted income statement is used to determine: a) The company’s sales revenue b) The company’s production target c) The company’s cash inflows and outflows d) The company’s net income Answer: d) The company’s net income