Which of the following statements are not true?
Credit purchase are where the goods or services have not yet been received by the business and payments has not yet been made.
Credit sales are made when the payment is received after the goods or services have been delivered
Cash sales are made when cash is received at the same time as the goods or services are delivered.
Cash purchases are those purchases for which cash payments will be made at the same time as the goods or services are received.
Which of the following does not appear as a separate section on the cash budget?
Cash receipts
Cash disbursements
Capital expenditures
Financing
Purchase of Furniture is an example for
Cash payments
Cash receipts and Cash payments
None of these
Which of the following items never appear on a cash budget?
Office salaries expense
Indirect expense
Depreciation expense
Travel expense
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
Cash budget is a useful tool for
Accounting
Taxation
Financial planning
Profit determination
The opening balance of cash in April is Rs. 1250. Total receipts for the month are Rs.4300 and total payments amounted to Rs. 3750. Opening balance of cash in May will be
1,800
1,900
2,000
3,200
Cash budget deals with
Estimated cash receipts
Estimated cash payments
Estimated cash receipts & Estimated cash payments
Estimated profit
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
The direct materials and direct labour budgets provide information for preparing the
Sales budget
Production budget
Manufacturing overhead budget
Cash budget
