ACTG 2P21 Test 1,2,3 (10)

ACTG 2P21 Test 1,2,3 (10) - l 1 Where do most companies...

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Unformatted text preview: l 1. Where do most companies start in the budgeting process? A) They estimate how many units the production department is able to produce. B) They look at past performance. \/ C) They estimate expected profits. ) \D) They look at competitors' future plans. 5 @12. At January 1L2’Q‘0’QLCeau‘ic, Inc. has beginning inventory of 2,000 boogie boards. Ceatric estimates it will seW®Wfidflfi12% increase in sales each quarter. Ceatric‘s policy is to maintain an endmgimzentogLequal tme‘i/éiof the next quarter's sales. Each surfboard costs Mr} is sold for 150. How much/is budgeted sales revenue for the third quarter of2009? A) $225,000 - ,, 2 _ . fl . 13) $940,800- 3:11;; 53—53%“ 543/2 C) $6,272i - , . , D) $975,000 3. Which one of the following is correct concerning a budget? A), It is a written statement of managements' plans for a specified future time period/ N) It is required for all business operations. C) It can focus as a substitute for management.,{ _ D) It is used only by manufacturing companies-x \_/ \ 14. Jason Company determined that the budgeted cost of producing a product is Mm . unit. On June 1, there were 11,000 units on hand. The sales department budgeted sales 0W8. The company desires to have 8,000 units on h How much is the budgeted cost of goods Jnannfacflclflbr June? _ A) $387,600 gamerfim v‘ ”New B) $323,000 ‘é'w 0 C) $317,000 2,1157” D) $380,400 R15. A company's past experience indicates that 70%. of its credit sales are collected in the / month of sale Win the next month. The remainder is never collected. The company's budgeted credit sales totalled: January $100,000 2 8, 0 0'0 February W March 110,000 6 “t 3g!) How much are enacted cash receipts form [7 1 A) $88,200 B) $91,000 C) $93,800 D) $102,200 Version 2 Page 6 16. Farley Corn-any reorted the following information for 2009: udgeted sales $240,000 $310,000 $290,000 $360,000— udgeted purchases $90,000 $120,000_ $44,000 $33,000 ° Cost of goods sold is 35% of sales. - Farley purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. - Accounts payable is used only for inventory acquisitions. How much is the budgeted balance for Accounts Payable at October 3 l , 2009? A) $51,200 0 B) $102,000 ‘ C) $72,000 D) $43,000 99 @7' How often should a company prepare budget reports? A) As often as demanded by the stockholders B) As often as deemed necessary C) Annually is sufficient if the company is profitable D) Monthly to be sure the company is operating successfully - in "1‘ 4%5'12; ’7 18. Waco's Widgets plans to sell 22,000 widgets during Mayé I9;000 Hts in June, and i7 20,000 during July. Waco's policy is to keep 0% of the nex onth' . . as on 'n - ” WHOW man units should Waco produce durin; - A 19,100 , f_ .. ‘P B)) 18,900 I"? Eli/301110940 lflcu ; WK C) 21,000 3000 D) 19,000 {I 9. Sundy Company provided the following information for the month of August: Beginning cash balance 5 10,000 a Cash receipts 320,000 ~ Cash disbursements 308,000 Sundy borrowed w and repaid $(L'LDMun’ng the month. How much will Sundy's report on its budgeted‘balance sheet atéugustjiior cash? A) $12,000 155, ,, , ‘5 B) $65,000 Q3 2% 3;. 5 C) $22,000 - 1 1 D) - $75,000 ‘3- 3 Version 2 Page 7 ...
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