1. The cash budget is usually prepared after the budgeted income statement.

Group of answer choices

True

False

2.The manufacturing overhead budget is typically prepared before the production budget.

Group of answer choices

True

False

3. Budgets are used to plan and to control operations.

Group of answer choices

True

False

4. A benefit of self-imposed budgeting is that it may allow lower-level managers to create budgetary slack.

Group of answer choices

True

False

5. The sales budget often includes a schedule of expected cash collections.

Group of answer choices

True

False

6. Which of the following represents the normal sequence in which the below budgets are prepared?

Group of answer choices

Sales Budget, Budgeted Balance Sheet, Budgeted Income Statement

Budgeted Balance Sheet, Sales Budget, Budgeted Income Statement

Sales Budget, Budgeted Income Statement, Budgeted Balance Sheet

Budgeted Income Statement, Sales Budget, Budgeted Balance Sheet

7. When preparing a production budget, the required production equals:

Group of answer choices

budgeted sales + beginning inventory + desired ending inventory.

budgeted sales - beginning inventory + desired ending inventory.

budgeted sales - beginning inventory - desired ending inventory.

budgeted sales + beginning inventory - desired ending inventory.

8. The WRT Corporation makes collections on sales according to the following schedule:

25% in month of sale

65% in month following sale

5% in second month following sale

5% uncollectible

The following sales have been budgeted:

	Sales
April	$120,000
May	$100,000
June	$110,000

Budgeted cash collections in June would be:

Group of answer choices

$27,500

$98,500

$71,000

$115,500

9. Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience indicates that none of the sales on account will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be:

Group of answer choices

$169,800

$147,960

$197,880

$194,760

10. Sioux Corporation is estimating the following sales for the first four months of next year:

January	$260,000
February	$230,000
March	$270,000
April	$320,000

Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?

Group of answer choices

$286,500

$320,000

$192,000

$94,500