1. In a master budget, the schedule of cash disbursements for purchases of inventory is used to prepare the:

A. operating expense budget

B. purchases budget

C. capital budget

D. cash budget

2. Which of the following shows the planned quantities of units to be manufactured and the

expected cost of making these units?

A. Sales budget

B. Production budget

C. Capital budget

D. Cash flow budget

3. Where will the total amount of cash collections from customers, by the month, appear?

On the:

A. sales budget

B. operating expense budget

C. cash budget

D. budgeted balance sheet

4. ______ is a method of budgeting which requires each cost element to be justified as though the activities to which the budget relates were being undertaken for the first time.

A. flexible budgeting

B. Rolling budgeting

C. Activity based budgeting

D. Zero based budgeting

5. Citron Co. Ltd budgeted sales for the third quarter of 2015 are as follows: July -150,000, August- 200,000 and Sep.- 180,000. If the company collects 20% in the month of sales and 70% in the first month following the sale. What is Julys sale to be collected in August?

A. $15,000

B. $45,000

C. $105,000

D. $126,000