Cash management involves keeping an eye on the business's cash balance to ensure that A.the business is generating a profit B.all cash payments are included in the purchases budget C.there is enough cash on hand to pay for planned operations during the current period D.all cash receipts are included in the sales budget

Cash management involves keeping an eye on the business's cash balance to ensure that A.the business is generating a profit B.all cash payments are included in the purchases budget C.there is enough cash on hand to pay for planned operations during the current period D.all cash receipts are included in the sales budget

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9Q: A company has prepared the operating budget and the cash budget. It is now preparing the budgeted...

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When preparing the cash budget, all the following should be considered except: Cash payments to suppliers. Cash payments for equipment. Depreciation expense. Cash receipts from customers.
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
When preparing a budget, A.GST is a necessary cost of doing business B.GST is only necessary for income items as this is remitted to the ATO C.GST needs to be factor as generally the amount owing to the ATO is greater than what the ATO owes D.GST is levied on all items of a business
The cash budget and the budgeted statement of cash flows both provide information about cash. What information about cash is common to these two sources, and what information is unique to the two sources? Assume that in preparing the cash budget, the accountant discovers that a cash shortage will likely occur in a specific month. What actions might the accountant recommend to management to deal with the cash shortage?
Classify the following activities as primarily managerlal accounting or financlal accounting: a. Preparing a cash budget for the next quarter. b. Analyzing the profitability of a request from a potential customer. c. Accumulating the transactions for the previous six months to prepare an income statement. d. Preparing a weekly performance report for the branch manager. e. Preparing an announcement to be released to the financial analysts.
The cash budget and the budgeted statement of cash flows both provide information about cash. What information about cash is common to these two sources, and what information is unique to the twosources? Assume that in preparing the cash budget, the accountant discovers that a cash shortage will likely occur in a specific month. What actions might the accountant recommend to management to deal with the cash shortage?
A budget is a detailed plan of all the economic activities of a business. It acts as a business barometer. It is usually prepared in the light of past experience. It is a constant endeavor of the management.
From the above information, can you produce the budgeted statement of financial position and a brief analysis report?
A plan that shows the cash balance on hand at the beginning of a budget period, expected cash flow from operations, cash flows from investing activities, cash flows from financing activities, and an ending cash balance is called a(n): Financial budget. Cash budget. Capital budget. Operating budget. Cash receipts budget.
Cash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Select one: True False
Bank loan officers would find which of the following budgets to be one of the most important in determining whether or not to give a company a loan? Sales budget O Production budget O Budgeted income statement O Budgeted balance sheet O Cash budget
A company can expect to receive which of the following benefits when it starts its budgeting process? The budget provides managers with a benchmark against which to compare actual results for performance evaluation. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur. The budget helps motivate employees to achieve sales growth and cost-reduction goals. All of the above