Budgeting Paper 14

1

Which one of the following items would have to be included for a company preparing a schedule of cash receipts and disbursements for calendar Year 1?






2

The cash receipts budget includes






3

Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% will be collected the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be






4

The cash budget must be prepared before completing the






5

Flesher Farms is preparing its cash budget for the next year. Sales are expected to be $100,000 in January, $200,000 in February, $300,000 in March, and $100,000 in April. Approximately half of all sales are cash sales, and the other half are on credit. Experience indicates that 70% of the credit sales will be collected in the month following the sale, 20% the month after that, and 10% in the third month after the sale. What are the budgeted collections for April?






6

The Alsner Company budgeted sales of $220,000 for June, $200,000 for July, $280,000 for August, $264,000 for September, $244,000 for October, and $300,000 for November. Approximately 75% of sales are on credit; the remainder are cash sales. Collection experience indicates that 60% of the budgeted credit sales will be collected the month after the sale, 36% the second month, and 4% will be uncollectible. Which month has the highest budgeted cash receipts?






7

Whopper, Inc., budgeted sales on account of $150,000 for July, $210,000 for August, and $198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September equal






8

The Matthew Nichols Company budgeted sales of $200,000 for July, $280,000 for August, $198,000 for September and $200,000 for October. Approximately 75% of sales are on credit; the remainder are cash sales. Collection experience indicates that 60% of the budgeted credit sales will be collected the month after the sale, 36% will be collected the second month, and 4% will be uncollectible. The cash receipts budgeted for October equal






9

A company is in the process of identifying, evaluating, and selecting projects that require a large commitment of funds and will generate benefits well into the future. The company will look at the budget over the life of the projects and review many different options. This is an example of






10

Which one of the following best describes the capital budget?






Result

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