61.Which of the following statements is
incorrect?
A. Capital budgeting affects the master budget because it considers what assets a company should have and use when achieving its budgets.
B. Capital budgeting involves decisions as whether to buy or lease equipment.
C. Capital budgeting focuses on short-term planning.
D. Cash outflows for capital budgeting will appear on the cash budget.
62.Which of the following is generally included in a sales budget?
A. Schedule of cash receipts for the projected sales
B. Desired ending inventory
C. Budgeted cost of goods sold
D. Schedule of cash payments for inventory purchases
63.What information does the sales budget provide for pro forma financial statements?
A. Total budgeted sales to be used on the pro forma income statement
B. Cash collections from customers to be used on the pro forma balance sheet
C. The ending balance in accounts payable which appears on the pro forma balance sheet
D. All of these answers are correct.
64.Which of the following would
not
be included in the inventory purchases budget?
A. Required purchases
B. Cash collections
C. Budgeted cost of goods sold
D. Desired ending inventory
65.What budget is generally
not
included in a master budget?
A. Strategic budget
B. Capital budget
C. Operating budget
D. All of these answers are correct.
66.Which of the following is a true statement?
A. Pro forma financial statements are based on the company's budgets.
B. Companies prepare pro forma financial statements to show how their performance for the period will "look" if actual results match the budget.
C. Companies usually prepare a pro forma income statement, pro forma balance sheet, and pro forma statement of cash flows.
D. All of these answers are correct.
67.Which of the following would
not
be included in the cash budget?
A. Receipts from customers
B. Ending cash balance
C. Interest expense
D. Depreciation expense
68.The master budget details:
A. Long-term objectives.
B. Intermediate objectives.
C. Short-term objectives.
D. All of these answers are correct.
69.Which of the following is a benefit associated with budgeting?
A. Promotes planning and coordination
B. The ability to take corrective action to improve performance
C. Enhances performance measurement
D. All of these answers are correct
70.The type of planning that involves long term decisions, such as defining the scope of the business and deciding what products to make is known as:
A. Continuous planning
B. Strategic planning
C. Capital budgeting
D. Operations budgeting