Which of the following statements is true?1. Budgets are used for the distinct purposes of planning and profit.II. Control Involves developing goals and preparing various budgets to achieve those goals.III. A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed.Multiple ChoiceNone of the statements are true.Only statement Ill is true.○ Only statement I is true.All of the statements are true.B

The objective of the question is to identify the correct statement among the given options related…

Answered: Which of the following statements is…

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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1. How does budgeting provide important information to managers and operating personnel? 2. Explain at least three times of budgets. 3. Explain how a flexible budget is used?
What are the two main activities involved in budgeting? Detailing No answer text provided. Preparing Decision Making Post-evaluation No answer text provided. Planning Controlling
26. The sales budget is the first budget to be created in a commercial setting. This is followed by the production budget and the last of the functional budgets to be created is the cash budget. Explain why the budgets are created in this order.
While the operating budgets reflect the operating activities of the company, the financial budgets reflect the financing and investing activities. Group of answer choices True False
Which of the following statements is true? I. The master budget consists of a number of separate but interdependent budgets. II. The production budget is typically prepared before the direct materials budget. III. The selling and administrative budget is typically prepared before the cash budget. Multiple Choice Only statement III is true. Only statement II is true. All of the statements are true. None of the statements are true.
1. A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. a. True b. False 2. Budgets should not be used to provide managers with “pre-approval” for the execution of spending plans. a. True b. False 3. A flexible budget is not designed to change with changes in activity level. a. True b. False 4. The production budget comes before the materials purchases budget. a.True b. False 5. The starting point for the master budget is an assessment of anticipated production next year. a. False b. True
Describe the 5 types of budgets listed for these Wk 3 Financial Exercises: Problem Set 2, Part 1. In your descriptions, include the budget's objective, how the budget assists an organization in managing its financial activities, and what types of data need to be included in that specific budget. Type of Budget Cash Flow Operating Sales Static Financial Description Insert cash flow description. Insert operating description. Insert sales description. Insert static description. Insert financial description.
Which one of the following statements is true about a balanced budget? Group of answer choices Revenues should be less than expenses Revenues and expenses should be equal Expenses should not be greater than revenues Zero-based method should be used every other year
The primary benefits of budgeting include all of the following except it Select one: O a. provides definite objectives for evaluating performance. O b. requires only top management to plan ahead and formalize their future goals. C. creates an early warning system for potential problems. O d. motivates personnel throughout the organizatiorm O e. None of the answers are correct
2. State whether the following sentences are TRUE or FALSE ASTARINS # Statements 1 The production budget is typically prepared prior to the sales budget. One benefit of budgeting is that it coordinates the activities of the entire organization. The master budget is a network consisting of many separate budgets that are interdependent. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. 5 A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of product. 2 3 4 TRUE or FALSE 3. Which of the following represents the normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash, Sales B. Production, Cash, Income Statement C. Sales, Balance Sheet, Direct Labor D. Production, Manufacturing Overhead, Sales 1280 4. Which of the following represents the correct order in which the indicated budget documents…
The includes all other budgets to present a complete and comprehensive view of the company's financial position. A) zero-based budget O B) master budget O C) operating budget O D) financial budget O E) capital budget
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

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