1. What is budget? 2. How does budgeting become a useful tool in business? 3. What are the different types of budgets? 4. Are external and internal factors considered in forecasting the sales budget? 5. How does the production budget helps giving information on the number of units to be produced over a given period? 6. Does an operations budget help in knowing the expected profit? 7. What is the use of a cash budget in the cash position of a company in the future?

1. What is budget? 2. How does budgeting become a useful tool in business? 3. What are the different types of budgets? 4. Are external and internal factors considered in forecasting the sales budget? 5. How does the production budget helps giving information on the number of units to be produced over a given period? 6. Does an operations budget help in knowing the expected profit? 7. What is the use of a cash budget in the cash position of a company in the future?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13MC: The cash budget is part of which category of budgets? sales budget cash payments budget finance...

See similar textbooks

Similar questions

Explain the role of a sales forecast in budgeting. What is the difference between a sales forecast and a sales budget?
A company has prepared the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Identify the document that contains each of these balances. A. cash B. accounts receivable C. finished goods inventory D. accounts payable E. equipment purchases
Explain how a budgeted income statement for a service business may be used for both planning and control purposes.
The cash budget is part of which category of budgets? sales budget cash payments budget finance budget operating budget
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?
1. What is the difference between strategic and operational plans?2. What is the purpose of financial plans?3. What are the component of an operations plans?4. What are the pro forma financial statements?5. What is the percentage of sales forecasting method? What are some of the limitations financial analysis should be aware of in applying this method?6. What is a cash budget? What are the usual steps involved in preparing a cash budget?7. Explain the difference between deterministic and probabilistic financial planning models.
Which of the following budgets will show the expected cash receipts and expected cash disbursements of the firm? * budgeted balance sheet cost of goods sold budget budgeted income statement O cash budget Working capital is the total current assets and current liabilities * True False It is the cost of ordering raw materials. Your answer
Which statement about the cash budget is correct? It is also called the statement of cash flows. It can show managers when the company will experience a net loss. It can indicate when sales are insufficient. It can show managers when additional financing will be necessary.
What are the benefits of tying a budget to the overall goals of the company?
Should a firm's cash budget relate back to its accounting profits? Do the two need to remain in sync?
What is the objective of preparing an operating budget and its significance to the success of the business? (Essay form answer)
4. What are the pro forma financial statements? 5. What is the percentage of sales forecasting method? What are some of the limitations financial analysis should be aware of in applying this method? 6. What is a cash budget? What are the usual steps involved in preparing a cash budget?