1.It is the most important account in the financial statement in making a forecast because most of the expenses are correlated with it. a. sales c. interest b. accounts Receivable d. equity _2. Which of the following statements best describe the production budget? a. It refers to the variable and fixed cost needed to run the operations. b. It provided information regarding to the number of units that should be produced c. It is the statement of the firms inflows and outflows of cash. d. It identifies how much would be collected in the cash budget. _3. This balance is maintained in case of contingencies arise. a. ending cash balance c. minimum cash balance b. beginning cash balance d. cash flow balance _4. Which of the following characteristics of an effective plan which quantify an indicator progress. a. time-related c. measurable b. realistic d. specific 5. Which of the following is the tool of the company to set an overall goal of what the company's performance? a. cash budget c. income b. long-term goals d. projected financial statement