1. The production budgets are used to prepare which of the followingbudgets?

a.	Operating expenses
b.	Direct materials purchases, direct labor cost, factory overheadcost
c.	Sales in dollars
d.	Sales in units

2. The first budgetcustomarily prepared as part of an entity's master budget isthe:

a.	production budget
b.	cash budget
c.	sales budget
d.	direct materials purchases

3. Periodic comparisonsbetween planned objectives and actual performance are reportedin:

a.	zero-base reports
b.	budget performance reports
c.	master budgets
d.	budgets

4. A partnership isdissolved when:

a.	A new partner is admitted	c.	Partners decide to end business operations
b.	An old partner withdraws	d.	All of the above

5. When dividingincome between partners with no formal agreement, income would bedivided in the following manner:

a.	Based on original investment	c.	Based on amount of service provided by partners
b.	Equally	d.	None of the above

6. Income for the year is$125,000. Partner I and J share in income at the ratio of3:2. What is Partner J's share of the income?

a.	$100,000	c.	$50,000
b.	$75,000	d.	$62,500