1. Which of the following is NOT a function of budgets?

A. Planning

B. Remuneration

C. Coordination

D. Motivation

2. Which of the following budgets is for a single activity level?

A. Flexible budget

B. Master budget

C. Continuous budget

D. Static budget

3 All the following statements regarding budgeting are true, EXCEPT:

A. Budgeting helps managers to determine the resources needed to meet their goals and objectives

B. Budgeting is a key ingredient in good decision-making

C. Budgeting is a bookkeeping task

D. The focus of budgeting is planning

4. Which of the following is the usual starting point for budgeting?

A. The sales budget

B. Net income

C. The production budget.

D. The cash budget

5. What are the two MAIN components of the master budget?

A. Cash budget and the capital budget

B. purchases budget and the budgeted income statement

C. budgeted income statement and the budgeted balance sheet

D. operating budget and the financial budget