$1.$Which of the options IS NOT a motivation for capital budget?A$.$A$.$Have the best in class technology B$.$Standardisation of the assets C$.$Substitute old and close to the end of life assets and upgrade of capacity of productionD.Technology updating $2.$What is the primary concept of the payback method?A$.$Matching the rate of return with a benchmark of the market B$.$Estimating how long would it take to recover the investment C$.$Balancing the interest of the investor with the entrepreneur D$.$Net present value at a discount rateQuestion $3$If managers have different projects with the same NPV$,$ what could they do to decide which to have green light?A$.$The one that is preferred by the company's top managementB.Allocating the resources to the alternative that standardise the technology of the companyC.The one that represents a solution to the bottleneck of the company D$.$The one that is more aligned to the competences of the company Question $4$In what situation the bottleneck criterion would be override?A$.$When company's available human resources don't have the skills to develop the project with bottleneck solutionB.When there is an alternative that is a legal or regulatory compliance solution C$.$When the other project is a technology update project D$.$When the bottleneck project takes more time to be implemented$5.$Question $5$The buying or lease decision is supported by the application of the NPV criteria, which means:A$.$The leasing option may be the best option if both NPVs are the same B$.$Managers would apply a sensitivity analysis to compare the projects C$.$Managers would project the alternatives in two tables by applying the NPV method, to the same period D$.$Managers would have to choose a higher discount rate for the lease optionQuestion $6$The master budget is the aggregation of the other budgets outcomes. What is the most relevant item in the master budget?A$.$Cash flow estimationB.The financing needsC.The income statement. It represents the potential of the company's operations to generate profits D$.$The balance sheet Question $7$Which of the options below DOES NOT have relevant balance sheet components for the master budget analysis?A$.$Fixed assets and Accounts payableB.InventoryC.Accounts receivablesD.Gross margin Question $8$For the accounts receivables estimation, managers can apply the average collection period method, or alternatively they can:A$.$The receivables would be proportionally the same as what was obtained the year before, normalized by the net income of the budgeted year divided by the last year net income B$.$Apply a plain simple percentage on the previous years accounts receivables C$.$Layer back the cash$-$in events for each month according to the percentage of receivables expected for that monthD.Do a rough estimation of the receivables based on the historical data Question $9$The inventory level for a particular period of the budgeted year can be calculated by using the formula provided. Managers can calculate the Days in Inventory because they have the:A$.$The receivables would be proportionally the same as what was obtained the year before, normalized by the net income of the budgeted year divided by the last year net income processB.The value of cost of goods sold and the direct materials inventory C$.$Inventory level from the ending inventory of finished goods budget, and the cost of goods sold from the COGS budget D$.$Apply a plain simple percentage on the previous years accounts receivablesQuestion $10$What would be the budgeted ending accounts payable for each quarter, for a company with $ $520,000$ of annual accounts payable $(130,000/$quarter$),$ and $ $3,500,000$ of annual credit purchases?A$.$$ $77,143\mathrm{.}00$B$.$$ $54,456\mathrm{.}00$ C$.$$ $84,300\mathrm{.}00$D$.$$ $65,378\mathrm{.}00$ Question $11$What should be the ending finished goods inventory level for a quarter, in money basis, for a company with $48$ days of inventory estimated in its budget, and the budgeted COGS of $ $1,320,000$ in a quarter?A$.$$ $705,905\mathrm{.}00$B$.$$ $696,264\mathrm{.}00$ C$.$$$678,430\mathrm{.}00$D$.$$ $623,500\mathrm{.}00$Question $12$What would be the cash behavior if an aggressive collection policy were implemented?A$.$It would decrease accounts receivables turnover, which decreases cash B$.$It would increase accounts receivables turnover, which reduces cash increase C$.$It would increase accounts receivables turnover, which generates cash increase D$.$it would decrease accounts receivables turnover, which increases cash Question $13$What would be the cash behavior if managers decide to increase stock level?A$.$An increase in stock level would increase inventory turnover, generating cash increaseB.An increase in stock level would decrease inventory turnover, generating cash increaseC.An increase in stock level would decrease inventory turnover, generating cash decrease D$.$An increase in stock level would increase inventory turnover, generating cash decreaseQuestion $14$What would be the cash behavior if managers decide to slow suppliers payment or avoiding early payment discounts?A$.$It would increase accounts payable turnover, generating cash decrease B$.$It would decrease accounts payable turnover, generating cash decrease C$.$It would increase accounts payable turnover, generating cash increase D$.$It would decrease accounts payable turnover, generating cash increase