5. If accounts payable have historically been 20% of sales and we have estimated sales of 200,000, than estimated accounts payable must be: a. $ 10,000 b. $ 20,000 .$ 30,000 d. $ 40,000 Which budget is prepared for determining how much external financing we will need to support estimated sales? a. Cash Budget b. c. d. Sales Forecast 6. Budgeted Income Statement Budgeted Balance Sheet A good place to start in preparing the Budgeted Balance Sheet is with the main link between the Income Statement and the Balance Sheet. This link is: a. Cash b. Retained Earnings 7. Current Assets Long Term Liabilities c. d. One way to improve the budgeting process is to include qualitative techniques into forecasting. Which of the following is an example of a qualitative technique? a. 5 Year Trend Analysis b. Ratio Analysis c. 8. Percent of Sales Method Interviewing the President of the Company d. Statistical methods can be used to improve the accuracy of forecasting. This approach is particularly useful for forecasting sales since we are searching for the right fit based on several observations. One popular approach to finding the right statistical fit is to use: a. Exponential Smoothing b. Regression Analysis c. Executive Polling 9. d. Moving Average 10. Which of the following will contribute to making budgeting a non-value added activity; i.e. the cost of budgeting exceeds the benefit? a. The budgeting process is included within the strategic planning process. b. Detail and Summary Budgets are prepared at the same time and are distributed to management for approval. Budgets throughout the organization are automated for enterprise-wide consolidation c. d. Line item detail in budgets is based on material thresholds