8-1CheckpointQuestions

Which is the mostly likely purpose of budgeting? a. Assess the non-financial performance of an organization b. Planning and control of an organization's income and expenditure C.Preparation of a five-year business plan d. Company valuation

Why is it important that a firm prepares a budget and how they analyze the ongoing performance? What advantages does a business have by going through the budget process?

What is a cash budget, and how is this statementused by a business? How is the cash budget affected by the CCC? By credit policy?

What are the benefits of tying a budget to the overall goals of the company?

a. Explain your understanding about the budget cycle b. Please illustrate an example of budget cycle's application in a business illustration of a whole series in order of the budget cycle!

What is the major benefit of tying a budget to the overall goals of the company?

Discuss three assumptions of cost-volume-profit analysis.   Discuss reasons why companies would establish a formal budgeting process for their businesses.

Under what conditions would you recommend using each of these funding methods to pay for information systems expenses: allocation, chargeback, and corporate budget? What impact does the IT budget have on the company, both short-term and long-term?

A cash budget serves as a crucial guide in presenting information on the strength of an organization’s liquidly”. Discuss this statement.

Capital budgeting is the​ ________. A. process of planning for investments in long−term assets B. process of evaluating the profitability of a business C. process of making pricing decisions for products D. preparation of the budget for operating expenses

T F A capital budget estimates a firm’s expendituresfor labor costs and other monthly expenses.

Which of the following best describes horizontal analysis? A comparing a company's financial statements with other companies B calculating key ratios to evaluate performance C comparing financial statement amounts from year to year for the same company D expressing each financial statement amount as a percentage of a budgeted amount

Generally speaking, budgets are not used to: assist in the control of profit and operations. facilitate communication and coordinate activities. evaluate performance. create a plan of action. identify a company's most profitable products.

Explain statement of cash flows proforma and its significance in budgeting. Provide a hypotheticalexample of financial statements consisting of an initial balance sheet, income statement, statementof cash flows and ending balance sheet in a manufacturing enterprise.