ACG 2071 Final Exam Questions with Correct Answers
Question 1:
Which of the following statements is true of the budgeting process?
Answer:
It is a continuous process that encourages communication.
Question 2:
Which of the following is an example of the planning function of a budget?
Answer:
The budget outlines a specific course of action for the coming period.
Question 3:
Which of the following is an example of the coordination and communication function of a
budget?
Answer:
A budget demands integrated input from different business units and functions.
Question 4:
Which of the following is an example of the benchmarking function of a budget?
Answer:
Budget figures are used to evaluate the performance of managers.
Question 5:
An intentional understatement of expected revenues or overstatement of expected expenses
by managers in order to have a favorable performance evaluation is known as
Answer:
.
budgetary slack
Question 6:
Which of the following budgets focuses on the income statement and its supporting schedules?
the operating budget
The starting point in the budgeting process is the preparation of the
Answer:
. Sales Budget
, Question 7:
The
Answer:
details how the business expects to go from the beginning cash balance to the desired ending
cash balance. Cash budgetThe cash budget and the budgeted financial statements are
collectively known as the
Question 8:
Which of the following statements is true of the operating budget?
Answer:
>It includes the sales revenue budget.
Question 9:
Which of the following statements is true of the capital expenditures budget?
Answer:
It must be completed before the cash budget is prepared.
Question 10:
The direct materials budget is prepared on the basis of the
Answer:
. Production budget
Question 11:
Which of the following is true of the sales budget?
Answer:
It is used in the production budget.
Question 12:
Which of the following describes the cash budget?
Answer:
It helps in planning to ensure the business has adequate cash.
Question 13:
Which of the following describes the selling and administrative expenses budget?
Answer:
It captures the variable and fixed components of selling and administrative expenses of the
business.
Question 1:
Which of the following statements is true of the budgeting process?
Answer:
It is a continuous process that encourages communication.
Question 2:
Which of the following is an example of the planning function of a budget?
Answer:
The budget outlines a specific course of action for the coming period.
Question 3:
Which of the following is an example of the coordination and communication function of a
budget?
Answer:
A budget demands integrated input from different business units and functions.
Question 4:
Which of the following is an example of the benchmarking function of a budget?
Answer:
Budget figures are used to evaluate the performance of managers.
Question 5:
An intentional understatement of expected revenues or overstatement of expected expenses
by managers in order to have a favorable performance evaluation is known as
Answer:
.
budgetary slack
Question 6:
Which of the following budgets focuses on the income statement and its supporting schedules?
the operating budget
The starting point in the budgeting process is the preparation of the
Answer:
. Sales Budget
, Question 7:
The
Answer:
details how the business expects to go from the beginning cash balance to the desired ending
cash balance. Cash budgetThe cash budget and the budgeted financial statements are
collectively known as the
Question 8:
Which of the following statements is true of the operating budget?
Answer:
>It includes the sales revenue budget.
Question 9:
Which of the following statements is true of the capital expenditures budget?
Answer:
It must be completed before the cash budget is prepared.
Question 10:
The direct materials budget is prepared on the basis of the
Answer:
. Production budget
Question 11:
Which of the following is true of the sales budget?
Answer:
It is used in the production budget.
Question 12:
Which of the following describes the cash budget?
Answer:
It helps in planning to ensure the business has adequate cash.
Question 13:
Which of the following describes the selling and administrative expenses budget?
Answer:
It captures the variable and fixed components of selling and administrative expenses of the
business.
