37. What is a budget? 1. A financial and operational business plan 2. An estimation of an organisation's financial performance 3. A financial business plan covering the next 2-3 years 19. Which of the following are important purposes of the budgeting process: 1 Manning 2 Identification of scarce resources Authorisation and control 4 Co-ordination and communication 5 Motivation and performance evaluation Select one: Od 1 O 6.2 06. d. None of the above Select one All of the above b. None of the above O c. 1 and 2 Od 1.2.3 and 5 2 and 3 3. The statement of financial position of a business includes the following information E Trade receivables 10.000 Trade payables 14.000 Bank overdraft 5,000 Invertory 15.000 4. The profit for the year of a business was 15.000. Balances in the business's books include the following E Premises 80.000 Trade receivables 12.000 Trade payables 7,000 Inventory 2.000 1000 20.000 What is the liquid ratio? Select one 0.50-1 What is the return on tapital employed IOCE) 1.141 o Which of the following is most likely to be a fixed cost? 9. A business has calculated the following ratios: GPW Profit for the year Year 1 404 19 Year 2 404 25% Select one: Why did the profit for the year increase in year 27 Select one: a. Cost of sales reduced ob, Cost of sales increased O c. Expenses increased d. Expenses decreased Production workers wages ob. Electricity charges OC Raw material costs Od Directors salary G 20. Which one of the following statements about CashBudiets is NOT true? of the sales price per unit is $100, the unit variable costs $75, and total feed costs are $150,000 Calculate the break even volume in dollar sales (rounded to the nearest whole dollar Select one 5.000 Select one: a. The cash budget shows all of the business's receipts and payments for the year ahead b. The cash budget shows the forecasted profit for the year c. The cash budget is a tool for planning and controlling cashflow d. The cash budget is usually produced in a month by month format $150,000 5260.000 Savana Supplies Limited has the following purchases budget for the last half of 2012: July $100,000 August $80,000 September $140,000 October $76,000 November $120,000 December $86,000 The company pays one half at the time of purchase and the remainder in the month following purchase. What are the expected cash payments in August? Select one: O a. $80,000 O b. $90,000 C. $110,000 od. $100.000