ACC 291T Budgeting Cash Receipts and
Cash Outflows Quick Check with correct
answers 100% 2026
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? - Correct Answers Adjust the percentages over time as the
company learns about its customers' payment patterns
What is the relationship between a company's cash budget and a company's statement of cash
flows? - Correct Answers A statement of cash flows is useful for general financing plans; a cash
budget is useful for detailed financing plans
Which set of factors impact a company's cash collection pattern? - Correct Answers Industry,
firm size, and collection policy
Loa Company expects to collect 30% of its credit sales in the month of sale, 50% in the month
following sale, and 18% in the second month following sale. These three percentages only add
up to 98%. What is represented by the other 2% of credit sales? - Correct Answers The 2% of
credit sales represents the sales that are never collected in cash.
At Lyman Company, past experience reveals that 10% of sales are for cash and the remaining
90% are on credit. Lyman Company expects to collect 30% of its credit sales in the month of
sale, 50% in the month following sale, and 18% in the second month following sale.
Which ONE of the following is part of the cash collections expected to be made in January? -
Correct Answers Cash collections of credit sales from the preceding December
At Torrey Company, past experience reveals that 10% of sales are for cash and the remaining
90% are on credit. Torrey Company expects to collect 30% of its credit sales in the month of
sale, 50% in the month following sale, and 18% in the second month following sale.
Cash Outflows Quick Check with correct
answers 100% 2026
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? - Correct Answers Adjust the percentages over time as the
company learns about its customers' payment patterns
What is the relationship between a company's cash budget and a company's statement of cash
flows? - Correct Answers A statement of cash flows is useful for general financing plans; a cash
budget is useful for detailed financing plans
Which set of factors impact a company's cash collection pattern? - Correct Answers Industry,
firm size, and collection policy
Loa Company expects to collect 30% of its credit sales in the month of sale, 50% in the month
following sale, and 18% in the second month following sale. These three percentages only add
up to 98%. What is represented by the other 2% of credit sales? - Correct Answers The 2% of
credit sales represents the sales that are never collected in cash.
At Lyman Company, past experience reveals that 10% of sales are for cash and the remaining
90% are on credit. Lyman Company expects to collect 30% of its credit sales in the month of
sale, 50% in the month following sale, and 18% in the second month following sale.
Which ONE of the following is part of the cash collections expected to be made in January? -
Correct Answers Cash collections of credit sales from the preceding December
At Torrey Company, past experience reveals that 10% of sales are for cash and the remaining
90% are on credit. Torrey Company expects to collect 30% of its credit sales in the month of
sale, 50% in the month following sale, and 18% in the second month following sale.
