ACC-350 Test #3 Question and answers
already passed 2025
When a company is preparing a budgeted statement of cash flows, the
payments to suppliers for purchases of direct materials can be obtained from
the ________. - correct answer ✔cash budget
Budgeting requires managers to develop overall business goals and budget
for specific actions to achieve the goals. - correct answer ✔true
In a company with different business units, individual managers make
decisions by changing various assumptions of its budget in order to determine
how the modifications would affect the operational and financial results. This
is an example of ________. - correct answer ✔sensitivity analysis
Budgetary slack occurs when managers intentionally overstate expected
revenues or understate expected expenses. - correct answer ✔false
While preparing the budgeted income statement of a merchandising company,
the amount of cost of goods sold can be taken from the ________. - correct
answer ✔inventory, purchases, and cost of goods sold budget
A budget represents the plans that a company has in place to achieve its
goals. - correct answer ✔true
The production budget is the first component of the operating budget. - correct
answer ✔false
Which of the following statements is true of the operating budget? - correct
answer ✔it includes the sales budget
already passed 2025
When a company is preparing a budgeted statement of cash flows, the
payments to suppliers for purchases of direct materials can be obtained from
the ________. - correct answer ✔cash budget
Budgeting requires managers to develop overall business goals and budget
for specific actions to achieve the goals. - correct answer ✔true
In a company with different business units, individual managers make
decisions by changing various assumptions of its budget in order to determine
how the modifications would affect the operational and financial results. This
is an example of ________. - correct answer ✔sensitivity analysis
Budgetary slack occurs when managers intentionally overstate expected
revenues or understate expected expenses. - correct answer ✔false
While preparing the budgeted income statement of a merchandising company,
the amount of cost of goods sold can be taken from the ________. - correct
answer ✔inventory, purchases, and cost of goods sold budget
A budget represents the plans that a company has in place to achieve its
goals. - correct answer ✔true
The production budget is the first component of the operating budget. - correct
answer ✔false
Which of the following statements is true of the operating budget? - correct
answer ✔it includes the sales budget
