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
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
Cash budget is a useful tool for
Accounting
Taxation
Financial planning
Profit determination
Cash Budget is also called as
Management Budget
Production Budget
Finance Budget
Sales Budget
The direct materials and direct labour budgets provide information for preparing the
Sales budget
Production budget
Manufacturing overhead budget
Cash budget
A budget period should be
Monthly
For a year or more
Long-Term
Long enough to provide an obtainable goal under normal business conditions.
Cash budget deals with
Estimated cash receipts
Estimated cash payments
Estimated cash receipts & Estimated cash payments
Estimated profit
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.
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.
The closing balance of one month will be the _____ balance of the next month.
Closing
Opening
Trading
None of these
