This quiz works best with JavaScript enabled. Home > Budgeting > The Master Budget > The Master Budget – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books The Master Budget Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A business may prepare for a cash deficit by: A) Reducing planned profits. B) Reducing planned cash payments. C) Reducing capital contributions. D) Increasing loan payments. Show Answer Correct Answer: B) Reducing planned cash payments. 2. The first step in planning and control is A) Preparation of the budget. B) Performance evaluation. C) Strategic planning. D) Setting long-term objectives. Show Answer Correct Answer: C) Strategic planning. 3. The following are elements attached to the budget, except ..... A) Covers all company activities. B) Expressed in monetary units. C) Made for a certain period of time to come. D) Meet the long-term goals of the organization. Show Answer Correct Answer: D) Meet the long-term goals of the organization. 4. This budget shows the units that must be produced to meet anticipated sales. A) Direct materials. B) Master. C) Sales. D) Production. Show Answer Correct Answer: D) Production. 5. A cash budget is used to determine: A) Profit. B) Cash closing balance. C) The value of the business. D) The debts of the business. Show Answer Correct Answer: B) Cash closing balance. 6. A budgeted income statement can be used by the business to predict: A) Profit. B) Expenses. C) Revenue. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. It is the process of planning andmanagement of the long-term investments ofthe company. A) Cash budget. B) Capital Budget. C) Sales budget. D) Profitability budget. Show Answer Correct Answer: B) Capital Budget. 8. Comprehensive financial plan? A) Master budget. B) Master budget. C) Continuous budget. D) Continuous budget. Show Answer Correct Answer: A) Master budget. 9. The production budget shows expected unit sales of 32, 000. Beginning finished goods units are 3, 600. Required production units are 33, 600. What are the desired ending finished goods units? A) 2, 000. B) 3, 600. C) 6, 400. D) 5, 200. Show Answer Correct Answer: D) 5, 200. 10. What is NOT one of the benefits of budgeting? A) Planning ahead. B) Creating early warning system. C) Knowing the future will always be correct. D) Motivating personnel. Show Answer Correct Answer: C) Knowing the future will always be correct. 11. Budget usage is ..... A) As work guidelines. B) Performance benchmarks. C) A and b are true. D) A and b are wrong. Show Answer Correct Answer: C) A and b are true. 12. These are the costs of personnel who are not directly involved with the transformation of the raw material into a finished product, but whose responsibilities are to support, supervise or direct. A) Direct labor. B) Indirect labor. C) Cost centre. D) None of above. Show Answer Correct Answer: B) Indirect labor. 13. Short-term goals ..... A) Take 3-12 months to reach. B) Less than 5 year to reach. C) More than 3 years to reach. D) 1-3 years to reach. Show Answer Correct Answer: A) Take 3-12 months to reach. 14. Which of the following budgets concerns the income-generating activities of the firm? A) Operating budget. B) Financial budget. C) Capital budget. D) All of the above. Show Answer Correct Answer: A) Operating budget. 15. A budget is/does NOT A) A primary method of communication. B) Promotes efficiency. C) A means to always a profitable company. D) Control device. Show Answer Correct Answer: C) A means to always a profitable company. 16. Visionary view to see what actions should be taken to realize certain goals is called A) Plan. B) Budget. C) Control. D) Planning. Show Answer Correct Answer: D) Planning. 17. The production budget shows that expected unit sales are 48, 000. The total required units are 54, 000. What are the required production units? A) 6, 000. B) 12, 000. C) 9, 000. D) Cannot be determined from the data provided. Show Answer Correct Answer: D) Cannot be determined from the data provided. 18. The budget mechanism that allows lower-level managers to participate in budgeting A) Cooperation budget. B) Participatory budget. C) Behavioral budget. D) Pseudo participation budget. Show Answer Correct Answer: B) Participatory budget. 19. Long-term goals ..... A) Take 3-12 months to reach. B) Less than 5 year to reach. C) More than 3 years to reach. D) 1-3 years to reach. Show Answer Correct Answer: C) More than 3 years to reach. 20. Jiggy Company plans to sell 33, 000 units during the month of May. The company plans to have 2, 500 units on hand at the end of the month. If 1, 200 units are on hand on May 1, how many units must be produced during May? A) 33, 000. B) 35, 500. C) 34, 300. D) 31, 800. Show Answer Correct Answer: C) 34, 300. Next →Related QuizzesBudgeting QuizzesThe Master Budget Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books