D076 Lesson Tests Question and
answers already passed 2025/2026
When can the discretionary financing needed (DFN) be determined? - correct answer ✔After pro-forma
financial statements are forecasted using the percent of sales method
When evaluating a company's performance, what can variances on a company's cash budget indicate? -
correct answer ✔Variances show that certain managers or divisions are not meeting targets.
How far into the future do cash budgets usually forecast? - correct answer ✔Between one month and
one year
What are three principles of budgeting that are important to know before beginning the budgeting
process? - correct answer ✔Keep records; develop savings, income, and expense strategies; and use a
method that meets your needs and objectives
What are the three main uses of cash budgets? - correct answer ✔Cash budgets are used to forecast
future financial need, aid in performance evaluation, and show when corrective action is needed.
Determine cash receipts, estimate cash disbursements, create the cash budget - correct answer ✔What
is the correct order of the three steps necessary to create a cash budget?
Because it is specific and measurable - correct answer ✔Why is "put $50 in a savings account each
month for Christmas gifts" a better budgeting goal than "save money for Christmas gifts"?
Because the payment is the same amount each month - correct answer ✔Why would a monthly
mortgage payment be considered a fixed expense?
, Compare your budgeted cash flows to your actual cash flows, and then revise the budget if necessary -
correct answer ✔Which action would help you make your budget more efficient?
A graduation gift of $100 from your grandmother (Since this is money, or income, coming into your cash
budget, it represents a cash receipt) - correct answer ✔Which item is an example of a cash receipt in a
personal budget?
A rent check paid and cashed for the warehouse the company uses - correct answer ✔Which item
represents an example of a cash disbursement a business might have this month?
Cash receipts, cash disbursements, and borrowing - correct answer ✔What three things should be
included in a cash budget for a business?
Raw materials, rent, administrative expenses, interest, and selling expenses - correct answer ✔Which
items are considered cash disbursements for a business?
Sales include both cash sales and credit sales. - correct answer ✔Why are sales not strictly considered
to be the same thing as cash receipts?
Firm specific risk is the risk associated with problems that companies may face because of lawsuits,
labor problems, or management decisions - correct answer ✔What makes market risk different from
firm-specific risk?
A firm-specific risk that comes from the probability of a loss resulting from a borrowers failure to repay a
contractual obligation - correct answer ✔Default Risk
Holding period - correct answer ✔What is the term for the return over the entire period that an
investor owns a financial security?
answers already passed 2025/2026
When can the discretionary financing needed (DFN) be determined? - correct answer ✔After pro-forma
financial statements are forecasted using the percent of sales method
When evaluating a company's performance, what can variances on a company's cash budget indicate? -
correct answer ✔Variances show that certain managers or divisions are not meeting targets.
How far into the future do cash budgets usually forecast? - correct answer ✔Between one month and
one year
What are three principles of budgeting that are important to know before beginning the budgeting
process? - correct answer ✔Keep records; develop savings, income, and expense strategies; and use a
method that meets your needs and objectives
What are the three main uses of cash budgets? - correct answer ✔Cash budgets are used to forecast
future financial need, aid in performance evaluation, and show when corrective action is needed.
Determine cash receipts, estimate cash disbursements, create the cash budget - correct answer ✔What
is the correct order of the three steps necessary to create a cash budget?
Because it is specific and measurable - correct answer ✔Why is "put $50 in a savings account each
month for Christmas gifts" a better budgeting goal than "save money for Christmas gifts"?
Because the payment is the same amount each month - correct answer ✔Why would a monthly
mortgage payment be considered a fixed expense?
, Compare your budgeted cash flows to your actual cash flows, and then revise the budget if necessary -
correct answer ✔Which action would help you make your budget more efficient?
A graduation gift of $100 from your grandmother (Since this is money, or income, coming into your cash
budget, it represents a cash receipt) - correct answer ✔Which item is an example of a cash receipt in a
personal budget?
A rent check paid and cashed for the warehouse the company uses - correct answer ✔Which item
represents an example of a cash disbursement a business might have this month?
Cash receipts, cash disbursements, and borrowing - correct answer ✔What three things should be
included in a cash budget for a business?
Raw materials, rent, administrative expenses, interest, and selling expenses - correct answer ✔Which
items are considered cash disbursements for a business?
Sales include both cash sales and credit sales. - correct answer ✔Why are sales not strictly considered
to be the same thing as cash receipts?
Firm specific risk is the risk associated with problems that companies may face because of lawsuits,
labor problems, or management decisions - correct answer ✔What makes market risk different from
firm-specific risk?
A firm-specific risk that comes from the probability of a loss resulting from a borrowers failure to repay a
contractual obligation - correct answer ✔Default Risk
Holding period - correct answer ✔What is the term for the return over the entire period that an
investor owns a financial security?
