Which of the following does not appear as a separate section on the cash budget?
Cash receipts
Cash disbursements
Capital expenditures
Financing
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.
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 term 'cash' in cash budget stands for ______ and ____
Credit balance, Debit balance
Cash balance, bank balance
Purchase, Sales
None of these
A common starting point in the budgeting process is
Expected future net income
Past performance
To motivate the sales force
A clean slate, with no expectations.
Cash budget is a useful tool for
Accounting
Taxation
Financial planning
Profit determination
The closing balance of one month will be the _____ balance of the next month.
Closing
Opening
Trading
Budget is expressed in terms of
Money
Physical units
Money & Physical units
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
