Accounting ii

Chapter 23

 Which of the following budgets is not an operating budget?

A) Sales budget.
B) General and administrative expense budget.
C) Merchandise purchases.
D) Cash budget.
E) Selling expenses budget.

 A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n):

A) Capital expenditures budget.
B) Selling expense budget.
C) Sales budget.
D) Operating budget.
E)Purchases budget.

 For budgets to be effective:

A) Goals should be attainable.
B) Employees affected by a budget should be consulted when it is prepared.
C) Evaluations should be made carefully with opportunities to explain any failures.
D) They should be properly applied to avoid negative effects.
E) All of these.

 A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is:

A) Cash budgeting.
B) Activity-based budgeting.
C) Management budgeting.
D) Master budgeting.
E) Traditional budgeting.

 Financial budgets include all the following except the:

A) Sales budget.
B) Budgeted balance sheet.
C) Budgeted income statement.
D) Cash budget.
E) All of these are financial budgets.

 Assuming a bottom-up process of budget development, which of the following should be initially responsible for developing sales estimates?

A) The sales department.
B) Top management.
C) The accounting department.
D) The marketing department.
E) The budget committee.

 A formal statement of future plans, usually expressed in monetary terms, is a:

A) Variance report.
B) Position statement.
C) Variance analysis.
D) Budget.
E) Prospectus.

 The usual budget period is:

A) A quarterly period separated into weekly budgets.
B) An annual period of 250 working days.
C) An annual period separated into weekly budgets.
D) A monthly period separated into daily budgets.
E) An annual period separated into quarterly and