Question 26. A forecast set of final accounts is also known as: (A) Capital budget (B) Cash budget (C) Master budget (D) Sales budget Answer: (B) Cash budget
Question 27. (A) Loan taken by firm (B) Proceeds from asset disposal (C) Reduction in provision for doubtful debts (D) Cash sales Answer: (C) Reduction in provision for doubtful debts
Question 28. Which of the following budgets should be produced first? (A) Production budget (B) Purchases budget (C) Master budget (D) Sales budget Answer: (D) Sales budget
Which of the following will not affect preparation of cash budget?
Question 29. Budgetary control involves all but one of the following: (A) Modifying future plans (B) Analyzing differences (C) Using static budgets (D) Determining differences between actual and planned results Answer: (C) Using static budgets
Question 30. A static budget is useful in controlling costs when cost behaviour is: (A) Mixed (B) Fixed (C) Variable (D) Linear Answer: (B) Fixed
Question 31. Responsibility centers include: (A) Cost centers (B) Profit centers (C) Investment centers (D) All of the above Answer: (D) All of the above
Question 32. Which of the following objective is not primary purpose of preparing budget? (A) To provide a basis for comparison of actual performance (B) To communicate the company’s plan throughout the organization and insure co-ordination of activity throughout the organization (C) To control income and expenditure for a given period (D) To insure that company expands its operations Answer: (D) To insure that company expands its operations
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