ACCT 201 Final Exam 3 Questions
Fully Solved 2025 -2026 Edition
Which of the following is not one of the primary benefits of a budget?
a. acquiring resources
b. evaluating performances and providing incentives
c. planing
d. controlling profits and operations
e. facilitating communication and coordination - Answer a. acquiring resources
Lee's Appliance forecasts the following sales figures for the next four months:April - $250,000
May - $150,000 June - $225,000 July - $150,000 Cash sales average 10% of the total sales and
credit sales are collected 50% in the month of the sale and 50% in the month following the sale.
The estimated cash collections in May are: - Answer 195,000
Which of the following statements regarding static budgets is true?
a. they are designed to estimate revenues only
b. managers use them to help plan for uncertainties
c. they prepare for a range of activity levels
d. they are prepared for one level of sales volume - Answer d. they are prepared for one level
of sales volume
participative budgeting - Answer begins with lowest level of management, and is adjust at
each level to align with a strategic plan
incremental budgeting - Answer preparation begins with the budget from last year
Zero-based budgeting - Answer preparation begins with zero, every expense is justified
Rolling budget - Answer always includes 12 months of data. as one month ends, it is removed
from the budget, and the entire budget rolls forward one month
Standard cost - Answer budget for a single unit of product, made up of standard quantity and
Fully Solved 2025 -2026 Edition
Which of the following is not one of the primary benefits of a budget?
a. acquiring resources
b. evaluating performances and providing incentives
c. planing
d. controlling profits and operations
e. facilitating communication and coordination - Answer a. acquiring resources
Lee's Appliance forecasts the following sales figures for the next four months:April - $250,000
May - $150,000 June - $225,000 July - $150,000 Cash sales average 10% of the total sales and
credit sales are collected 50% in the month of the sale and 50% in the month following the sale.
The estimated cash collections in May are: - Answer 195,000
Which of the following statements regarding static budgets is true?
a. they are designed to estimate revenues only
b. managers use them to help plan for uncertainties
c. they prepare for a range of activity levels
d. they are prepared for one level of sales volume - Answer d. they are prepared for one level
of sales volume
participative budgeting - Answer begins with lowest level of management, and is adjust at
each level to align with a strategic plan
incremental budgeting - Answer preparation begins with the budget from last year
Zero-based budgeting - Answer preparation begins with zero, every expense is justified
Rolling budget - Answer always includes 12 months of data. as one month ends, it is removed
from the budget, and the entire budget rolls forward one month
Standard cost - Answer budget for a single unit of product, made up of standard quantity and
