Accounting

1.  The ____________ budget is a major part of the master budget & focuses on the income statement & its supporting schedules.
A. operating    B. cash
C. capital expenditures  D. financial

2.  Which of following budgets is part of the financial budgets?
A. Production budget  B. Budgeted balance sheet
C. Budgeted income statement D. Sales budget

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3.  A Company expects cash sales for July of $15,000, & a 20% monthly increase during August & September. Credit sales of $10,000 in July should be followed by 25% increases during August & September. What are budgeted cash sales & budgeted credit sales for September respectively?
A. $18,000 & $12,500 B. $21,600 & $15,376
C. $23,438 & $14,400 D. $18,750 & $12,000

4.  Kayla’s Toys budgeted sales of $300,000 for the month of November & cost of goods sold equal of 70% of sales. Beginning inventory for November was $50,000 & ending inventory for November is estimated at $55,000. How much are the budgeted purchases for November?
A. $205,000  B. $  95,000
C. $215,000  D. $105,000

5.  A Company manufactures stuffed bears.  The number of bears to be produced in the upcoming three months follows:
Number of teddy bears to be produced in July 12,000
Number of teddy bears to be produced in August 15,000
Number of teddy bears to be produced in September 10,000

Each bear requires 2 pounds of the plastic pellets used as stuffing.  The company has a policy that the ending inventory of plastic pellets each month must be equal to 20% of the following month’s expected production needs.  How many pounds of plastic pellets does The Teddy Bear Company need to purchase in August?
A. 20,000      B.  24,000 C.  28,000 D.  40,000

 

6.  Latimer Corporation collects 35% of a month’s sales in the month of sale, 50% in the month following sale, & 10% in the second month following sale.  The company has found that 5% of their sales are uncollectible.  Budgeted sales for the upcoming four months are:
August budgeted sales  $300,000
September budgeted sales  $280,000
October budgeted sales  $330,000
November budgeted sales  $260,000
The amount of cash that will be collected in Nov is budgeted to be:
A. $  91,000. B. $284,000.
C. $285,500. D. $289,000.

7.  Newton Company is preparing its cash budget for the upcoming month.  The beginning cash balance for the month is expected to be $12,000.  Budgeted cash receipts are $84,000, while budgeted cash disbursements are $72,000.  Newton Company wants to have an ending cash balance of $40,000.  The excess (deficiency) of cash available over disbursements for the month would be:
A. $24,000  B. $(24,000)
C. $112,000  D.  $168,000

8.  Thomario’s Powder Coatings makes payments on its inventory purchases as follows: 25% in the month of purchase, 60% in the following month, & 15% in the second month following purchase. Budgeted inventory purchases for June, July, & August are $15,000, $19,000 & $24,000, respectively. At what amount are cash payments for inventory in August budgeted?
A. $18,750 B. $19,650
C. $8,700  D. $7,650

12.  A Company is preparing its cash budget for the upcoming month.  The budgeted beginning cash balance is expected to be $30,000.  Budgeted cash receipts are $101,000, while budgeted cash disbursements are $123,000.  The Company wants to have an ending cash balance of $45,000.  How much would the Company need to borrow to achieve its desired ending cash balance?
A.   $  8,000   B.   $23,000
C.   $37,000   D.   $53,000

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