Accounting 2101 LSU Exam 2
QUESTIONS N ANSWERS RATED A+
2025/2026
Budget - CORRECT ANSWER ✔✔A formal written statement of management's plans for a
specified future time period, expressed in financial terms.
Budgetary Slack - CORRECT ANSWER ✔✔The amount by which a manager intentionally
underestimates budgeted revenues or overestimates budgeted expenses in order to make it
easier to achieve budgetary goals
Budget committee - CORRECT ANSWER ✔✔A group responsible for coordinating the
preparation of the budget.
Budgeted balance sheet - CORRECT ANSWER ✔✔A projection of financial position at the end of
the budget period.
Budgeted income statement - CORRECT ANSWER ✔✔An estimate of the expected profitability
of operations for the budget period.
Cash budget - CORRECT ANSWER ✔✔A projection of anticipated cash flows
Direct labor budget - CORRECT ANSWER ✔✔A projection of the quantity and cost of direct labor
necessary to meet production requirements.
Direct materials budget - CORRECT ANSWER ✔✔An estimate of the quantity and cost of direct
materials to be purchased.
, Financial budgets - CORRECT ANSWER ✔✔Individual budgets that focus primarily on the cash
resources needed to fund expected operations and planned capital expenditures.
Long-range planning - CORRECT ANSWER ✔✔A formalized process of identifying long-term
goals, selecting strategies to achieve those goals, and developing policies and plans to
implement the strategies.
Manufacturing overhead budget - CORRECT ANSWER ✔✔An estimate of expected
manufacturing overhead costs for the budget period.
Master budget - CORRECT ANSWER ✔✔A set of interrelated budgets that constitutes a plan of
action for a specific time period.
Merchandise purchases budget - CORRECT ANSWER ✔✔The estimated cost of goods to be
purchased by a merchandiser to meet expected sales.
Operating budgets - CORRECT ANSWER ✔✔Individual budgets that result in a budgeted income
statement.
Participative budgeting - CORRECT ANSWER ✔✔A budgetary approach that starts with input
from lower-level managers and works upward so that managers at all levels participate.
Production budget - CORRECT ANSWER ✔✔A projection of the units that must be produced to
meet anticipated sales.
Sales budget - CORRECT ANSWER ✔✔An estimate of expected sales revenue for the budget
period.
QUESTIONS N ANSWERS RATED A+
2025/2026
Budget - CORRECT ANSWER ✔✔A formal written statement of management's plans for a
specified future time period, expressed in financial terms.
Budgetary Slack - CORRECT ANSWER ✔✔The amount by which a manager intentionally
underestimates budgeted revenues or overestimates budgeted expenses in order to make it
easier to achieve budgetary goals
Budget committee - CORRECT ANSWER ✔✔A group responsible for coordinating the
preparation of the budget.
Budgeted balance sheet - CORRECT ANSWER ✔✔A projection of financial position at the end of
the budget period.
Budgeted income statement - CORRECT ANSWER ✔✔An estimate of the expected profitability
of operations for the budget period.
Cash budget - CORRECT ANSWER ✔✔A projection of anticipated cash flows
Direct labor budget - CORRECT ANSWER ✔✔A projection of the quantity and cost of direct labor
necessary to meet production requirements.
Direct materials budget - CORRECT ANSWER ✔✔An estimate of the quantity and cost of direct
materials to be purchased.
, Financial budgets - CORRECT ANSWER ✔✔Individual budgets that focus primarily on the cash
resources needed to fund expected operations and planned capital expenditures.
Long-range planning - CORRECT ANSWER ✔✔A formalized process of identifying long-term
goals, selecting strategies to achieve those goals, and developing policies and plans to
implement the strategies.
Manufacturing overhead budget - CORRECT ANSWER ✔✔An estimate of expected
manufacturing overhead costs for the budget period.
Master budget - CORRECT ANSWER ✔✔A set of interrelated budgets that constitutes a plan of
action for a specific time period.
Merchandise purchases budget - CORRECT ANSWER ✔✔The estimated cost of goods to be
purchased by a merchandiser to meet expected sales.
Operating budgets - CORRECT ANSWER ✔✔Individual budgets that result in a budgeted income
statement.
Participative budgeting - CORRECT ANSWER ✔✔A budgetary approach that starts with input
from lower-level managers and works upward so that managers at all levels participate.
Production budget - CORRECT ANSWER ✔✔A projection of the units that must be produced to
meet anticipated sales.
Sales budget - CORRECT ANSWER ✔✔An estimate of expected sales revenue for the budget
period.
