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Unformatted text preview: Quiz Questions for Chapter 7 1. Strategic planning focuses on a. short-range decisions. b.intermediate-range decisions. c. sales targets. d.long-range decisions. 2. A plan that formalizes in financial terms the overall goals and objectives of a company is called a a. capital budget. b.master budget. c. participative budget. d.strategic plan. 3. The beginning inventory is expected to be 2,000 cases. Expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases. The number of cases the company must purchase during the month is a. 11,000 cases. b.10,000 cases. c. 9,000 cases. d.13,000 cases. 4. Cash receipts for January are expected to total $171,000. Cash disbursements for January are expected to be $158,000. The companys minimum desired cash balance is $10,000. It started the period with $35,000. What is the expected cash balance at the end of January? a. $10,000 b.$48,000 c. $25,000 d.$206,000 5. Manufacturing overhead expenses are budgeted at $2,000 per month. Included in the $2,000 are $500 of monthly depreciation expense and $200 of allocated expenses related to manufacturing insurance that is paid in September. expense and $200 of allocated expenses related to manufacturing insurance that is paid in September....
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- Spring '08