21. Sharpe Ltd made these estimates for the six months ending 31 December. Estimates:

Cash receipts from services provided	$60,000
Cash payments for expenses, including rent paid in advance ($3,000)	$43,000
Purchase of equipment ($1500 will not be paid until February)	$20,000
Depreciation of equipment	$4,000
Borrowings	$15,000

The cash balance at 1 July is $13,000. The estimated cash balance at 31 December is:

Select one:

a.Surplus of $13,500.

b.Surplus of $26,500.

c.Surplus of $11,000.

d.Deficit of $15,000.

22. Which of the following budgeted revenues has an unfavourable variance?

Select one:

a.Dividends $7,500, actual dividends revenue $8,500.

b.Rent $4,000, actual rent revenue $4,000.

c.Interest $2,000, actual interest revenue $1,400.

d.Cash sales $50,000, actual cash sales $70,000.

23. From the following data calculate the estimated cash received in June.

Credit sales:

• April: $42,000
• May: $54,000
• June: $38,000.

Credit sales are normally settled in the pattern: 50% in the month of sale, 40% in the first month following the sale, and the balance in the second month following the sale.

Select one:

a.$44,800

b.$40,600

c.$19,000

d.$25,800

24. The schedule of receipts from accounts receivable (debtors) is prepared to provide information for the:

Select one:

a.Production budget.

b.Cash budget.

c.Budgeted balance sheet.

d.Sales budget.

25. An interrelated set of budgets for a future period is known as:

Select one:

a.A master budget.

b.A combined budget.

c.A program budget.

d.An assembly of budgets.