202_Ch19_Quiz - ACCT. 202- CH. 19 QUIZ - BUDGETS 1. Which...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT. 202- CH. 19 QUIZ - BUDGETS 1. Which one of the following is not a benefit of budgeting? a. It facilitates the coordination of activities. b. It provides definite objectives for evaluating performance. c. It provides assurance that the company will achieve its objectives. d. It requires all levels of management to plan ahead on a recurring basis. 2. Which one of the factors below is not a major influence of the length of budget periods? a. The nature of the organization b. The type of budget c. Prevailing business conditions d. The profitability of the company 3. Which one of the following is an advantage of using continuous budgeting? a. It is updated daily to reflect current activity. b. It assures the company is operating at the activity level of the master budget. c. It allows companies to compare the current with the previous year. d. It keeps management planning a full year ahead. 4. Which one of the following helps improve the reliability of the sales forecast? a. Reduction of differences between actual and estimated amounts b. Creation of management awareness c. Consideration of industry trends d. Extension of the budget period 5. What might a very conservative sales budget cause? a. An decrease in selling prices b. A shortage of inventories c. Increased sales during the year d. Overproduction of goods 6. Which one of the following best describes a master budget? a. It is an interrelated long-term plan and operating budgets. b. It includes financial budgets and a long-term plan. c. It includes interrelated financial budgets and operating budgets. d. It is all the accounting journals and ledgers used by a company.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

202_Ch19_Quiz - ACCT. 202- CH. 19 QUIZ - BUDGETS 1. Which...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online