FAQ: Which Of The Following Items Does Not Follow From The Adoption Of A Budget?

Which of the following will not appear on a cash budget?

The correct answer to the given question is option (a) Depreciation expense. Since the depreciation expense does not affect the cash flows for a firm, it would not appear in the cash budget.

Which of the following is one of the factors that must be present if budgets are to be effective?

Which of the following is one of the factors that must be present if budgets are to be effective? The company must have a sound organizational structure.

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Which of the following does not appear as a separate section on the cash budget Group of answer choices?

Answer: The correct answer is ” Capital expenditures “.

Which of the following is not normally included in a master budget?

Which of the following is not normally included in a master budget? capital budget.

Which of the following would be found in a cash budget?

The cash budget is comprised of two main areas, which are Sources of Cash and Uses of Cash. The Sources of Cash section contains the beginning cash balance, as well as cash receipts from cash sales, accounts receivable collections, and the sale of assets.

Does fixed budget ignore inflation?

A budget that never changes. A budget that ignores inflation. Flexible budgets allow management latitude in meeting goals, whereas a static budget is based on a fixed standard. A static budget is for an entire production facility, but a flexible budget is applicable only to a single department.

What are the four elements in cash budget?

The cash budget represents a detailed plan of future cash flows and is composed of four elements: cash receipts, cash disbursements, net change in cash for the period, and new financing needed.

Which time period is the most common for budget periods?

The most common budget period is one month. The chief accountant (controller) has responsibility for coordinating the preparation of the budget.

What is the single most important output in preparing financial budgets?

0 out of 1 points The single most important output in preparing financial budgets is the Selected Answer: budgeted income statement.

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Which one of the following is not considered an operating budget?

Which of the following is not considered an operating budget? Cash budget.

Which of the following is calculated on a direct labor budget?

A direct labor budget calculates the total number of labor hours required to manufacture the units in the production budget. Complex labor budgets take it a step further by also breaking down the labor into categories.

Which one of the following is a the most critical factor in budgeting in a service company?

A critical factor in budgeting for a service firm is to determine the amount of products to purchase. The budget itself and the administration of the budget are entirely accounting responsibilities.

What are the three main components of the master budget?

The major components of a master budget include income and expenses, overhead and production costs, and the monthly, annual, average and projection totals.

What are the parts of a master budget?

The master budget contains the following elements:

  • Sales budget.
  • Production budget.
  • Direct materials budget.
  • Direct labour budget.
  • Manufacturing overhead budget.
  • Selling and administrative budget.
  • Capital acquisitions budget.
  • Cash budget.

How is master budget prepared?

A master budget is a comprehensive budget created from a series of smaller, specialized business budgets. Once completed, these smaller budgets are rolled up into a budgeted income statement format, while the financial budget consists of a projected balance sheet and statement of cash flow.

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