Question 1

Characteristics of Budgets include:  Expressed in monetary terms  Typically span 5 to 10 years  Expressed in nonfinancial terms  Typically span 1 year  A focus on the past  A focus on the Future

Accepted Answer

Expressed in monetary terms  Typically Span 1 year  A focus on the future

Question 2

The First step in preparing the master budget is planning the (blank) budget

Accepted Answer

sales

Question 3

the control function involves evaluating actual to budgeted performance results of the following:   Economic Factors  Industry Factors  Company Factors  Past Performance factor  Expected performance factors

Accepted Answer

Economic Factors  Industry Factors  Company Factors

Question 4

A(n) blank is a formal statement of a company\'s future plans, usually expressed in monetary terms.

Accepted Answer

budget

Question 5

The most useful budgets are developed through a blank process:  Bottom-up  Top-down

Accepted Answer

bottom-up

Question 6

the primary purpose of using short-term budgets is to

Accepted Answer

evaluate performance and quickly take necessary corrective action

Question 7

A budget that includes teh office manager\'s salary and other administrative expenses is called the

Accepted Answer

general and administrative budget

Question 8

the managerial accounting report showing predicted amounts of sales and expenses for the budget period is the:   Cash budget  Budgeted income Statement  Budgeted balance sheet

Accepted Answer

Budgeted income Statement

Question 9

the process of evaluating and planning for plant asset expenditures is called blank budgeting

Accepted Answer

capital budgeting

Question 10

the budgeting process that involves adding a quarter or month to the end of the budget period at the end of each quarter or month, therefore creating a rolling budget, is called:  Capital budgeting   Master Budgeting  Continuous budgeting  Operations budgeting

Accepted Answer

Continuous budgeting

Question 11

budgeting is used by management to ensure that activities of all departments contribute to meeting the company\'s overall goals. This aspect of budgeting is called:  Control  Coordination  Correction

Accepted Answer

Coordination

Question 12

A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers of delay in shipments is called BLANK stock

Accepted Answer

Safety

Question 13

the process of planning future business actions and expressing them as formal plans is called

Accepted Answer

budgeting

Question 14

A budget which estimates the types of selling expenses expected during the budget period is called a:  Selling expense budget  Capital expenditures budget  Administrative budget  Cash receipts budget

Accepted Answer

Selling expense budget

Question 15

A manufacturer will prepare a BLANK budget instead of a merchandise purchase budget.

Accepted Answer

production

Question 16

A manufacturing company has budgeted production at 940 units for the month. Each unit requires 3.5 hours of labor to produce. The labor rate is $15 per hour. The total cost of direct labor for the month will be

Accepted Answer

$49350

Question 17

the managerial accounting report showing predicted amounts of the company\'s assets, liabilities, and equity as of the end for the budget period is the:  Budgeted income Statement  Cash Budget  Budgeted Balance sheet

Accepted Answer

Budgeted balance sheet

Question 18

A merchandising company would typically prepare which of the following operating budgets that a manufacturing company would not prepare?  Direct materials Budget  Production Budget  Purchases Budget

Accepted Answer

Purchases Budget

Question 19

True or False: A production budget is unique in that it does not show costs; it is always expressed in units of product.

Accepted Answer

True

Question 20

The Financial Budgets include the:  Selling Expense Budget  Budgeted income statement  budgeted balance sheet  cash budget  sales budget

Accepted Answer

budgeted income statement  budgeted balance sheet

Question 21

Potential negative outcomes of budgeting include:  Budgetary slack  Unnecessary spending  Unethical behavior

Accepted Answer

Budgetary slack  Unnecessary spending  unethical behavior

Question 22

Budgeting process guidelines include:  The opportunity to explain failures  Attainable goals  Participatory budgeting  budgetary slack  top-down budgeting

Accepted Answer

The opportunity to explain failures  Attainable goals  Participatory budgeting

Question 23

to calculate the inventory to be purchased in a merchandise purchases budget, the formula is:

Accepted Answer

Budgeted ending inventory  Plus  Budgeted cost of sales for the period  minus  Budgeted beginning inventory

Question 24

a manufacturer\'s operating budgets consist of the:  Direct labor budget  Factory overhead budget  Direct Materials budget  Cash budget  Purchases budget

Accepted Answer

Direct labor budget  Factory overhead budget  Direct Materials budget

Question 25

Which of the following items would be included on the capital expenditures budget?  Disposal of plant assets   Pant asset purchases  Inventory Purchases  Interest expense  Sales

Accepted Answer

Disposal of plant assets   Pant asset purchases

Question 26

Most companies prepare an BLANK budget that is separated into BLANK budgets  Annual; quarterly or monthly  Three to five year; annual  Monthly; weekly or daily

Accepted Answer

Annual; quarterly or monthly

Question 27

The financial budgets include the:  Budgeted income statement  Budgeted balance sheet  Sales budget  Cash budget  Selling expense budget

Accepted Answer

Budgeted income statement  Budgeted balance sheet

Question 28

Identify the benefits of budgeting. Select all answers that apply.  Motivates employees  Focuses on future opportunities   Assists in the control function  Focuses on daily operation  Leads to uncertainty among employees

Accepted Answer

Motivates employees  Focuses on future opportunities   Assists in the control function

Question 29

A merchandising company would typically prepare which of teh following budgets instead of the operating budgets?  Production budget  Manufacturing Budget  Merchandise Budget

Accepted Answer

Merchandise Budget

Question 30

The purpose of the budget committee is to help ensure:  Participation from all departments  That all departments accept the budget as reasonable  That budgeted amounts are realistic and coordinated   That unrealistic figures from departments are rejected and adjusted by the committee  Limited communication between management and employees

Accepted Answer

Participation from all departments  That all departments accept the budget as reasonable  That budgeted amounts are realistic and coordinated

Question 31

True or False: Interest expense and income tax expense are considered general and administrative expenses and therefore, are included on the general and administrative expense budget.

Accepted Answer

False

Question 32

List the individual budgets of the master budget in the order in which they are prepared, with the first on top

Accepted Answer

Sales Budget   Production Budget  Various expense budgets   Capital expenditures budget  Cash budgets

Accounting LearnSmart Ch. 20 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards