Budget is expressed in terms of
Money
Physical units
Money & Physical units
None of these
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.
A budget period should be
Monthly
For a year or more
Long-Term
Long enough to provide an obtainable goal under normal business conditions.
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
Opening balance of cash in January is Rs 9,000. The estimated receipts are Rs 14,000 and the estimated payments are Rs 10,000. The opening balance of cash in February will be
Rs 21,000
Rs 11,000
Rs 13,000
Rs 12,000
The closing balance of one month will be the _____ balance of the next month.
Closing
Opening
Trading
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.
Budget is an estimate relating to
Future period
Current period
Past period
Long Period
Which of the following items never appear on a cash budget?
Office salaries expense
Indirect expense
Depreciation expense
Travel expense
Budgeting is usually most closely associated with which management function?
Directing
Motivating
Controlling
Planning
