1.A business has prepared a cash budget for the coming period, which forecasts a deficit. Strategies listed below relate to items appearing in the budget. Select all of the strategies below that may improve the forecast cash position in the coming period.

Select one or more:

a. Negotiate with suppliers to pay accounts in full.

b. Offer discounts to accounts receivable customers to pay their accounts sooner.

c. Instead of paying the annual insurance policy in one instalment, convert to monthly payments.

d. Continue to take weekly drawings for personal use.

e. Convert loan repayments to principle and interest, instead of interest only.

2.Details in this question relate to a factory manufacturing face masks. Select all of the statements below that are false.

Select one or more:

a. Fabric used in production would be classified as a direct cost.

b. Cost of sales would include the direct and indirect costs incurred during the whole period, for masks both sold and still in stock.

c. Administration and advertising costs would appear in the income statement below gross profit.

d. Elastic used in the manufacture of masks may be classified as either a direct or indirect cost.

e. When determining the selling price or mark-up on the masks, only direct costs need to be considered.

3. A number of statements are provided below which relate to cost-volume-profit analysis. Select all of the statements that are true.

Select one or more:

a. If a proposed new business can start 'small' and minimise fixed costs, it may be able to reach the break-even point sooner.

b. Cost-volume-profit analysis can be used to forecast multiple scenarios, including best, worst and most likely outcomes.

c. Relevant range does not need to be considered when a business is starting out.

d. Higher risk is associated with businesses that have lower operating leverage.

e. Rounding to whole numbers is only necessary so that projected financial statements do not contain decimals.