ACG 2071 EXAM 1 COMPLETE STUDY GUIDE
QUESTIONS AND VERIFIED ANSWERS
●● Which of the following types of cash outlays has its own budget?
A. Income taxes
B. Dividends
C. Capital expenditures
D. All of the above
Answer: C
●● What is included on a combined cash budget?
Answer: Projected cash balance at the end of the month; projected cash
collections and cash payments; projected borrowings and repayments
●● When projecting cash receipts for a given month, the company
should:
A. include all sales made in that month, regardless of whether they are
COD or credit
B. only list COD sales made that month
C. only list credit sales made in that month
D. do none of the above
Answer: D
,●● The _____ budget is a budget that projects cash inflows and outflows
and the end of period budgeted balance sheet
Answer: financial
●● The _____ budget is a company's plan for purchases of property,
plant and equipment, and other long-term assets
Answer: capital expenditures
●● What is the technique called that asks what a result will be if a
predicted amount is not achieved or if an underlying assumption
changes?
Answer: Sensitivity analysis
●● The ____ budget provides details as to how the company expects to
go from the beginning cash balance to the desired ending cash balance.
Answer: cash
●● The _____ budget projects cash inflows and outflows and the
budgeted balance sheet.
Answer: financial
●● A budgeted balance sheet is an example of what type of budget?
Answer: financial
, ●● Which of the following is NOT considered when preparing the cash
budget?
A. Depreciation expense
B. Cash receipts from customers
C. Payments for inventory
D. Cash payments to suppliers
Answer: A
●● The preparation of ____ is the final step in the preparation of the
financial budget?
Answer: Budgeted balance sheet
●● Which of the following is NOT a responsibility center?
A. Cost center
B. Profit center
C. Equity center
D. Investment center
Answer: C
●● In a(n) ____ center, a manager is ONLY accountable for expenses.
Answer: Cost
QUESTIONS AND VERIFIED ANSWERS
●● Which of the following types of cash outlays has its own budget?
A. Income taxes
B. Dividends
C. Capital expenditures
D. All of the above
Answer: C
●● What is included on a combined cash budget?
Answer: Projected cash balance at the end of the month; projected cash
collections and cash payments; projected borrowings and repayments
●● When projecting cash receipts for a given month, the company
should:
A. include all sales made in that month, regardless of whether they are
COD or credit
B. only list COD sales made that month
C. only list credit sales made in that month
D. do none of the above
Answer: D
,●● The _____ budget is a budget that projects cash inflows and outflows
and the end of period budgeted balance sheet
Answer: financial
●● The _____ budget is a company's plan for purchases of property,
plant and equipment, and other long-term assets
Answer: capital expenditures
●● What is the technique called that asks what a result will be if a
predicted amount is not achieved or if an underlying assumption
changes?
Answer: Sensitivity analysis
●● The ____ budget provides details as to how the company expects to
go from the beginning cash balance to the desired ending cash balance.
Answer: cash
●● The _____ budget projects cash inflows and outflows and the
budgeted balance sheet.
Answer: financial
●● A budgeted balance sheet is an example of what type of budget?
Answer: financial
, ●● Which of the following is NOT considered when preparing the cash
budget?
A. Depreciation expense
B. Cash receipts from customers
C. Payments for inventory
D. Cash payments to suppliers
Answer: A
●● The preparation of ____ is the final step in the preparation of the
financial budget?
Answer: Budgeted balance sheet
●● Which of the following is NOT a responsibility center?
A. Cost center
B. Profit center
C. Equity center
D. Investment center
Answer: C
●● In a(n) ____ center, a manager is ONLY accountable for expenses.
Answer: Cost
