Accounting a) Regardless of what your work indicates, if after preparing the budget you had identified that S&M, Inc. is continually facing cash shortfalls each quarter, what attempts may be made to remedy that issue? Should any important factors be considered before making a final decision on what, if any, changes should be made?

Accounting a) Regardless of what your work indicates, if after preparing the budget you had identified that S&M, Inc. is continually facing cash shortfalls each quarter, what attempts may be made to remedy that issue? Should any important factors be considered before making a final decision on what, if any, changes should be made?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1MC: Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing...

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Which of the following is an example of a situation in which a company could use budget information to make operational changes: Select one: a. Total revenues exceed projected costs. b. Profits are expected to rise. c. Accounts receivables are in order. d. Estimated sales exceed actual sales.
Identify the inaccurate statement. O The primary objective of preparing financial plans is to estimate the future financing requirements in advance. O The cash budget contains revenue projections and expenses in the month in which they are expected to occur. O One of the key steps in the development of pro forma financial statements is to identify those assets and liabilities which increase spontaneously with net income that some, but not all, income statement and balance sheet items maintain a constant relationship with the level of sales." O "A fundamental premise of percent of sales method A Moving to another question will save this response. « < Questior
Which of the following is not considered a benefit of the budgeting process? a. Gives managers guidance when evaluating the performance of business operations. b. Determines the exact amount of revenues and expenses for the upcoming fiscal period. c. Helps managers achieve short-term and medium-term goals. d. Helps managers set long-term strategic plans.
a. Based on the static budget report:1. What was the primary cause(s) of the loss in net income?2. Did management do a good, average, or poor job of controlling expense?3. Were management’s decisions to stay competitive sound?b. Prepare a flexible budget report for the year.c. Based on the flexible budget report, answer the three questions in part (a) above.d. What course of action do you recommend for the management of Alps Pastures
You are in the process of creating your department's projected operating budget. As you create this budget, you realize that you are very uncertain about the volume of services you will be providing in the future. What tool(s) can you use to understand the impact of that uncertainty on your budget? O A. Ratio analysis O B. Varlance analysis O C. None of these O D. Sensitivity analysis O E. Scenario analysis
With one exception, the following objectives are accomplished by budgeting. Which of these statements is NOT true about budgeting objectives? Shows management's operating plans for the coming period. O Locks in company spending for the period. O Forces all levels of management to think ahead, anticipate results, and take action to remedy poor results. O Formalizes management's plans in quantitative terms.
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
2.Based from the given choices below, peruse which is not considered to be a primary goal of budgeting - Group of answer choices - To make sure that the company expands its operations - To communicate the company's plans throughout the entire business organization - To control revenues and expenses during a given period
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.
Required: Identify the problems that appear to exist in the company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system. Explain how the company’s budgetary control system could be revised to improve its effectiveness.
Which of the following statements is/correct regarding the Cash Budget? The cash budget is a statement of a firm's planned inflows and outflows of cash that is used to estimate its long-term cash requirement. Cash budgets and pro forma statements are usetul not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS) A cash budget gives the financial manager a clear view of the timing of a firm's expected profitability over a given period Since depreciation and other noncash charges represent a scheduled write- off of an earlier cash outflow, they should not be included in the cash budget, though depreciation charges will affect the taxes that a firm pays IIL. IV O Il and III land IV O V only O I only l
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.