Cash budget is a useful tool for
Accounting
Taxation
Financial planning
Profit determination
Which of the following items never appear on a cash budget?
Office salaries expense
Indirect expense
Depreciation expense
Travel expense
Which of the following statement is incorrect?
The cash budget is an element of a master budget
The direct labour budget is specifically dependent on the production budget
The budgeting process would normally begin with preparation of a sales budget
A continuous budget is feasible only for sales projections
There are _______ methods by which a cash budget is prepared.
Two
Three
Four
Five
The direct materials and direct labour budgets provide information for preparing the
Sales budget
Production budget
Manufacturing overhead budget
Cash budget
Budget is an estimate relating to
Future period
Current period
Past period
Long Period
The closing balance of one month will be the _____ balance of the next month.
Closing
Opening
Trading
None of these
If budgets are to be effective, all of the following must be present expect.
Acceptance at all levels of management
Research and analysis in setting realistic goals
Share holders approval of the budget
Sound organisational structure
Budgeting is usually most closely associated with which management function?
Directing
Motivating
Controlling
Planning
Which of the following is not true about a cash budget.
A cash budget sets out all cash receipts and payments that a business expects to make over a period of time
Cash budgets include personal cash receipts and expenses
Cash budgets are usually prepared on a month-to month basis
Cash budgets show the expected bank balance at the end of the month.
