This quiz works best with JavaScript enabled. Home > Budgeting > The Master Budget > The Master Budget – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books The Master Budget Quiz 2 (19 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the elements that integrate a budget? A) Assets, liabilities, equity. B) Income, cost and expenses. C) Materials, purchases, raw material inventories. D) None of above. Show Answer Correct Answer: B) Income, cost and expenses. 2. Budget showing the forecast of future entriesand cash outflows (money in cash) of a company, toa certain period of time. A) Sales budget. B) Capital budget. C) Cash budget. D) Profiability budget. Show Answer Correct Answer: C) Cash budget. 3. What is the cash flow budget based on? A) Is based on credit and collection policies. B) Is based on the sales report. C) Is based on the expense report. D) None of above. Show Answer Correct Answer: A) Is based on credit and collection policies. 4. The two classes of budgets are: A) Operating & Financial. B) Variable & Fixed. C) Sales & Product. D) Direct materials & Direct labor. Show Answer Correct Answer: A) Operating & Financial. 5. A budget that contains estimates related to the company's activities within a certain period (period) to come, is referred to as ..... A) Financial Budget. B) Forecasting Budget. C) Operating Budget. D) Revenue Budget. Show Answer Correct Answer: C) Operating Budget. 6. Management's operating & financial plans for a specified period, including budged financial reports is expressed in: A) Cash Budget. B) Master Budget. C) Production Budget. D) Sales Budget. Show Answer Correct Answer: B) Master Budget. 7. The part of the master budget that contains information on expenses incurred for activities other than production activities is ..... A) Factory overhead budget. B) Operating cost budget. C) Raw material usage budget. D) Profit and loss budget. Show Answer Correct Answer: B) Operating cost budget. 8. The direct materials budget shows:Desired ending direct materials 48, 000 poundsTotal materials required 69, 000 poundsDirect materials purchases 63, 200 poundsThe total direct materials needed for production is A) 21, 000 pounds. B) 15, 200 pounds. C) 5, 800 pounds. D) 132, 200 pounds. Show Answer Correct Answer: A) 21, 000 pounds. 9. The first step in the budgeting process is the preparation of the A) Production budget. B) Selling and administrative expenses budget. C) Sales forecast. D) Cash budget. Show Answer Correct Answer: C) Sales forecast. 10. Which of the following items are not included in a cash budget? A) Gain on sale of asset. B) Cash sales. C) Payment received from debtors. D) Interest received from the bank. Show Answer Correct Answer: A) Gain on sale of asset. 11. What is NOT one of the factors that is considered in sales forecasting? A) Industry trends. B) Technological developments. C) Price changes. D) CEO's input. Show Answer Correct Answer: D) CEO's input. 12. A budget that describes the activities that generate revenue for the company A) Sales budget. B) Operational budget. C) Financial budget. D) Master budget. Show Answer Correct Answer: B) Operational budget. 13. This is the cost of the personnel directly linked to production (salary), i.e. the personnel involved in the transformation of the material into the finished product, the employees who work directly with the product. A) Direct labor cost. B) Indirect labor cost. C) Cost centre. D) None of above. Show Answer Correct Answer: A) Direct labor cost. 14. A budget that relates activity volume to the amount of rupiah budgeted is a type of budget ..... A) Incremental. B) Zero-based. C) Static. D) Flexible. Show Answer Correct Answer: D) Flexible. 15. Who is responsible for the budget? A) Accountants. B) Shareholders. C) Investors. D) Management. Show Answer Correct Answer: D) Management. 16. Financial budgeting refers to A) All budgets of the firm. B) Budgets for cash flows. C) Budgets for sales. D) Budgets for production. Show Answer Correct Answer: B) Budgets for cash flows. 17. This budget is always the first one to be prepared. A) Production. B) Direct materials. C) Sales. D) Direct labor. Show Answer Correct Answer: C) Sales. 18. Basically those who are authorized and responsible for the preparation of the budget and the implementation of budgeting activities are A) The head of the company. B) Top management of the company. C) Company manager. D) Senior employees. Show Answer Correct Answer: B) Top management of the company. 19. It's a scheduled estimatesystematically from theoperating conditions and theresults to be obtained by aorganism in a perioddetermined. A) Fiancial Statement. B) Cash flow. C) Budget. D) None of above. Show Answer Correct Answer: C) Budget. ← PreviousRelated QuizzesBudgeting QuizzesThe Master Budget Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books