Which of the following financial budgets is the overall framework for all other budgets?
a. Capital expenditures
b. Cash-flow
c. Balance sheet
d. Operating
e. Revenue
Question 2Which of the following financial budgets is also known as the master'' budget?
a. Cash-flow
b. Capital expenditures
c. Balance sheet
d. Revenue
e. Profit
Question 3The owner of an electronics store is concerned about whether or not there will be sufficient
financial resources to meet current obligations. She decides to try to forecast how much she
will have coming in from weekly sales and what she will have in the way of weekly
obligations. What kind of financial budget has she developed?
a. Balance sheet
b. Sales
c. Cash-flow
d. Revenue
e. Operating
Question 4Which of the following financial budgets is designed to ensure that the organization is able
to meet its current financial obligations?
a. Cash-flow
b. Revenue
c. Capital expenditure
d. Operating
e. Profit
Question 5Which of the following financial budgets deals with funding of major assets such as land
and plant and equipment?
a. Cash-flow
b. Cash
c. Capital expenditure
d. Revenue
e. None of these is correct.
Question 6Because of their quantitative nature, budgets help managers do many things. Which of the
following is NOT one of the uses for budgets?
a. Measure performance
b. Make comparisons between departments
c. Make comparisons between organizational levels
d. Make comparisons between time periods
e. Determine how to allocate resources
Question 7Which of the following is NOT one of the purposes of budgets?
a. Assist managers in coordinating resources and projects
b. Help reduce conflict between organizational units
c. Provide clear guidelines about organizational expectations
d. Facilitate performance evaluation
e. Help define standards needed in all control systems
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