1.

A cash budget is a plan indicating expected inflows and outflows of cash to aid in assessing short-term needs.

Group of answer choices

True

False

2.

Sales for next quarter are budgeted at 100,000 units. Finished goods inventory at the end of this quarter is 20,000 units. Planned production for next quarter is 140,000 units. What will be the budgeted finished goods inventory at the end of the next quarter?

Group of answer choices

60,000 units

50,000 units

40,000 units

20,000 units

3.

Jay Vee Corporation, a merchandising company, estimates that its sales for 2016 will be $90,000, $120,000, $110,000, and $126,000, respectively, for each quarter. Its cost of goods sold is 65% of sales, the ending inventory as of December 31, 2015, was $35,100, and it prefers to maintain inventory with a cost of 60% of the next quarter's cost of goods sold. The production required for the first, second, and third quarters, respectively, are:

Group of answer choices

$70,200; $74,100; $77,740

$58,500; $74,100; $77,740

$80,000; $82,000; $87,000

$58,500; $89,700; $67,600

4.

The master budget:

Group of answer choices

is the organization's five-year plan for financing and investing activities.

is prepared as the first step in developing the planned operating budget and the financial budget.

consists of a projected income statement and a projected balance sheet, with supporting budgets and schedules.

is initiated by first developing the cash budget.

5.

Periodic budget reports generally compare actual data with budgeted data.

Group of answer choices

True

False