Wk 3 – Practice: Topic 7: Budgeting Cash Receipts and
Cash Outflows Quick Check
Points
20
:
Graded on Mar 05 at 21:25
Your Submission:
Submission
(100.00%)
Score:
Grade Time: Mar 05 at 21:25
Submitted On: Mar 05 at 21:25
1. At Teasdale Company, past experience reveals that 20% of sales are for cash and the remaining 80% are
on credit. As the accountants at Teasdale Company prepare a cash budget, what will they do with these
percentages?
o Use the same percentages each month in order to maintain consistency.
o Adjust the percentages over time as the company learns about its customers’ payment patterns
o Use a higher percentage of credit sales in each month to reflect inflation.
o Use a lower percentage of credit sales in each month to create a conservative budget.
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(100.0%)
2. What is the relationship between a company’s cash budget and a company’s statement of cash flows?
o A statement of cash flows is an internal document; a cash budget is one of the three primary financial statements made availabl
o A statement of cash flows contains forecasted numbers expected in the future; a cash budget reports the results of past events
o A statement of cash flows is useful for general financing plans; a cash budget is useful for detailed financing plans
o A statement of cash flows is useful for detailed financing plans; a cash budget is useful for general financing plans.
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3. Which set of factors impact a company’s cash collection pattern?
o Prepaid rent, paid-in capital, and retained earnings
o Property, plant, and equipment
o Industry, firm size, and collection policy
o Inventory, advertising, and wages
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Cash Outflows Quick Check
Points
20
:
Graded on Mar 05 at 21:25
Your Submission:
Submission
(100.00%)
Score:
Grade Time: Mar 05 at 21:25
Submitted On: Mar 05 at 21:25
1. At Teasdale Company, past experience reveals that 20% of sales are for cash and the remaining 80% are
on credit. As the accountants at Teasdale Company prepare a cash budget, what will they do with these
percentages?
o Use the same percentages each month in order to maintain consistency.
o Adjust the percentages over time as the company learns about its customers’ payment patterns
o Use a higher percentage of credit sales in each month to reflect inflation.
o Use a lower percentage of credit sales in each month to create a conservative budget.
FEEDBACK
(100.0%)
2. What is the relationship between a company’s cash budget and a company’s statement of cash flows?
o A statement of cash flows is an internal document; a cash budget is one of the three primary financial statements made availabl
o A statement of cash flows contains forecasted numbers expected in the future; a cash budget reports the results of past events
o A statement of cash flows is useful for general financing plans; a cash budget is useful for detailed financing plans
o A statement of cash flows is useful for detailed financing plans; a cash budget is useful for general financing plans.
FEEDBACK
(100.0%)
3. Which set of factors impact a company’s cash collection pattern?
o Prepaid rent, paid-in capital, and retained earnings
o Property, plant, and equipment
o Industry, firm size, and collection policy
o Inventory, advertising, and wages
FEEDBACK
