ACG 2071 Exam 3 Questions with Correct Answers
Question 1:
Which of the following would NOT be shown on a cash payments budget? Cash dividends and
bad debt expense
Bad debt expense and depreciation expense Cash dividends and depreciation expense Cash
dividends and direct material purchases
Answer:
B
Question 2:
Which of the following types of cash outlays has its own budget? Income taxes
Dividends
Capital expenditures All of the above
Answer:
C
Question 3:
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
Question 4:
When projecting cash receipts for a given month, the company should:
include all sales made in that month, regardless of whether they are COD or credit only list COD
sales made that month
only list credit sales made in that month do none of the above
Answer:
D
Question 5:
The
Answer:
budget is a budget that projects cash inflows and outflows and the end of period budgeted
balance sheet financial
, Question 6:
The
Answer:
budget is a company's plan for purchases of property, plant and equipment, and other
long-term assets capital expenditures
Question 7:
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
Question 8:
The
Answer:
budget provides details as to how the company expects to go from the beginning cash balance
to the desired ending cash balance. cash
Question 9:
The
Answer:
budget projects cash inflows and outflows and the budgeted balance sheet. financial
Question 10:
A budgeted balance sheet is an example of what type of budget?
Answer:
financial
Question 11:
Which of the following is NOT considered when preparing the cash budget? Depreciation
expense
Cash receipts from customers Payments for inventory
Cash payments to suppliers
Answer:
A
Question 1:
Which of the following would NOT be shown on a cash payments budget? Cash dividends and
bad debt expense
Bad debt expense and depreciation expense Cash dividends and depreciation expense Cash
dividends and direct material purchases
Answer:
B
Question 2:
Which of the following types of cash outlays has its own budget? Income taxes
Dividends
Capital expenditures All of the above
Answer:
C
Question 3:
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
Question 4:
When projecting cash receipts for a given month, the company should:
include all sales made in that month, regardless of whether they are COD or credit only list COD
sales made that month
only list credit sales made in that month do none of the above
Answer:
D
Question 5:
The
Answer:
budget is a budget that projects cash inflows and outflows and the end of period budgeted
balance sheet financial
, Question 6:
The
Answer:
budget is a company's plan for purchases of property, plant and equipment, and other
long-term assets capital expenditures
Question 7:
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
Question 8:
The
Answer:
budget provides details as to how the company expects to go from the beginning cash balance
to the desired ending cash balance. cash
Question 9:
The
Answer:
budget projects cash inflows and outflows and the budgeted balance sheet. financial
Question 10:
A budgeted balance sheet is an example of what type of budget?
Answer:
financial
Question 11:
Which of the following is NOT considered when preparing the cash budget? Depreciation
expense
Cash receipts from customers Payments for inventory
Cash payments to suppliers
Answer:
A
