1. In preparing the direct materials budget for Rudder Company, management concludes that required purchases are 64,000 units. If 52,000 direct materials units are required in production and there are 7,000 units of beginning direct materials, what is the desired units of ending direct materials?

a. 19,000 b. 5,000 c. 109,000 d. 123,000

2. Which of the following budgets will show the expected cash receipts and expected cash disbursements of the firm?

a. budgeted balance sheet b. cost of goods sold budget c. budgeted income statement d. cash budget

3. Which of the following is not a private non-bank financial institution?

a. investment house b. investment company c. securities dealer/broker d. Social Security System

4. Depreciation expense on sale of equipment and office equipment will appear in which of the following budget?

a. selling and administrative expenses budget b. production budget c. factory overhead budget d. none of the above