QUESTION Which of the following is among the four principal types of budgets? A) forecasting budget B) long-term budget C) short-term budget D) capital budget E) discretionary budget ANSWER Answer: D Explanation: D) The four principal types of budgets are operating budgets, capital budgets, cash budgets, and master budgets.
QUESTION What is the time period over which a budget typically shows estimated revenue and expenses? A) one month B) six months C) one year D) two years E) five years ANSWER Answer: C Explanation: C) A typical budget shows estimated revenues and expenses for a time period of one year.
QUESTION What is a budget? A) a complete statement of financial management B) a financial plan covering stock options C) a financial plan showing estimated revenues and expenses D) a plan for implementing financial controls E) an estimate of the cash flow for a period of time ANSWER Answer: C Explanation: C) One part […]
QUESTION Which of the following is TRUE of the long-term forecast? A) It must go out no further than the next 5 years. B) It can go out as little as 6 months. C) It may be varied to reflect different overall strategic plans. D) It identifies a firm’s sales goals and specifies the costs […]
QUESTION Which type of forecast is a prediction for the next 4 months to 1 year? A) short-term forecast B) long-term forecast C) cash flow forecast D) extended forecast E) budget forecast ANSWER Answer: A Explanation: A) A short-term forecast makes a prediction for the next 4 months to 1 year.
QUESTION Spartan Furniture wants to identify its sales and production goals and the costs required to meet those goals. Which type of budget does it need? A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget ANSWER Answer: D Explanation: D) Operating budgets identify a firm’s sales and production […]
QUESTION Which two types of budgets are referred to as financial budgets? A) capital budgets and cash budgets B) capital budgets and operating budgets C) cash budgets and operating budgets D) cash budgets and master budgets E) master budgets and operating budgets ANSWER Answer: A Explanation: A) Capital budgets and cash budgets are called […]
QUESTION Spartan Furniture wants to estimate its expenditures for purchasing long-term assets that require significant sums of money. Which type of budget does it need? A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget ANSWER Answer: A Explanation: A) Capital budgets estimate a firm’s expenditures for purchasing long-term […]
QUESTION Spartan Furniture’s controller wants to show managers where the firm may have shortages or surpluses of funds throughout the year so that they can anticipate when they may have to borrow money. Which type of budget does he need? A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget […]
QUESTION What is the job of acquiring and managing funds called? A) financial prediction B) financial management C) sales forecasting D) budgeting E) bookkeeping ANSWER Answer: B Explanation: B) The job of acquiring and managing funds is called financial management.
