Which of the following statements Is false with respect to the sales budget Including a schedule of expected cash collections? Multiple Choice Estimating cash collections plays a role in preparing a cash budget. Although the estimated amounts of sales and cash collections may differ from one another on a month-to-month or quarterly basis, these two estimates must equal each other on an annual basis. Estimating sales ultimately impacts the estimated ending retained earnings on the balance sheet. Estimating cash collections also enables managers to estimate accounts receivable on the balance sheet.

Which of the following statements Is false with respect to the sales budget Including a schedule of expected cash collections? Multiple Choice Estimating cash collections plays a role in preparing a cash budget. Although the estimated amounts of sales and cash collections may differ from one another on a month-to-month or quarterly basis, these two estimates must equal each other on an annual basis. Estimating sales ultimately impacts the estimated ending retained earnings on the balance sheet. Estimating cash collections also enables managers to estimate accounts receivable on the balance sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is NOT correct? a. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period. b. The sales budget is constructed by multiplying the expected sales in units by the sales price. c. The sales budget is the starting point in preparing the master budget. d. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
Using the same above information, what would it look like to complete the following? Schedule of cash payments for direct materials.Cash budget.Budgeted income statement for entire second quarter (not monthly).
Which of the following statements is false about budgeted income statement and budgeted balance sheet ? a . The ending finished goods inventory will be included in the budgeted balance sheet . b. None of the given answers . c . The budgeted income statement must be prepared first before preparing the budgeted balance sheet . d. Credit purchases will be included in the accounts payable in the budgeted balance sheet. e. The cash budget must be prepared first before preparing both the budgeted income statement and the budgeted balance sheet.
(a) The business needs to have a sense of its future cashflows and therefore requires thepreparation of the following: ▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months October to December. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months October to December. ▪ A cash budget, with a total column, for the quarter ending December 31, 2021, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place.
which one is correct please confirm? QUESTION 16 When preparing a cash budget, once a firm has estimated its cash receipts the firm must ____________. a. pay dividends to its stockholders b. determine the desired cash balance c. plan a pro forma statement d. schedule disbursements
4. The difference between the budgeted amounts of Sales and Cash Received for sales is equal to the budgeted change in: a. Cash b. Accounts Receivable c. Accounts Payable d. Retained Earnings e. None of the Above
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
An income statement differs from a cash flow budget in the following ways: A. A cash flow budget does not account for non-cash expenses B. A cash flow budget includes full cost and sale value of capital assets C. A cash flow budget includes non-farm income, loan receipts, and debt payments. D. All of the above
?Which of the following statements is false about budgeted income statement and budgeted balance sheet .None of the given answers .a O The cash budget must be prepared first before preparing both the budgeted income statement and the .b O .budgeted balance sheet The ending finished goods inventory will be included in the budgeted balance sheet .c O .The budgeted balance sheet must be prepared first before preparing the budgeted income statement .d O .Credit purchases will be included in the accounts payable in the budgeted balance sheet .e O
The amount of prepaid expense reflected in the disbursement section of the cash budget is the same amount that is found on the monthly operating statement. True False
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
Lamberton Manufacturing Company has just completed its masterbudget. The budget indicates that the company’s operating cycleneeds to be shortened. Thus, the company will likely attempt:a. Stocking larger inventories.b. Reducing cash discounts for prompt payment.c. Tightening credit policies.d. None of the above selections is correct.