The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

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Answer 1

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Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

KIARA LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment (cost) Accumulated depreciation Long-term investments Inventory Accounts receivable Company tax paid in advance Bank EQUITY AND LIABILITIES 2024 2023 R R 2 490 000 1 620 000 (630 000) 660 000 1 050 000 1 230 000 30 000 (480 000) 450 000 1 290 000 900 000 0 750 000 660 000 5 580 000 4 440 000 Ordinary share capital 2 700 000 2 000 000 Retained income 1 500 000 1 158 000 Long-term loan from Kip Bank (15%) 900 000 1 000 000 Accounts payable 480 000 228 000 Company tax payable 0 54 000 5 580 000 4 440 000 ADDITIONAL INFORMATION All purchases and sales are on credit. Interim dividends paid during the year amounted to R150 750. Credit terms of 3/10 net 60 days are granted by creditors.

Accounting Question

Answer 2

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

Answer 6

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

Answer 7

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

Answer 12

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6Q Ch. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Concept explainers

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To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Answer to Problem 1Q

Explanation of Solution

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Chapter 8 Solutions

The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Concept explainers

Videos

To explain: The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Answer to Problem 1Q

Explanation of Solution

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Chapter 8 Solutions

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.