A budget is not: A plan A forecast A qualitative statement A part of the strategic management process

2. Which is the most expensive source of funds? A. New Equity Shares B. New Bank Loan C. New Debts D. Retained Earnings.

Strategic plans are: Forecasts Long-term Budgets Short-term

The broad purposes of budgeting do not include: Development of overseas markets Communication Planning and control Co-ordination

5. When a budget is administered wisely, it will A. Provide a framework for performance evaluation. B. Discourage managers and employees. C. Eliminate coordination and communication between subunits. D. Discourage strategic planning.

6. The purpose of strategic planning is not to consider: Expected growth Long-term financing Dividend policy Methods of tax evasion

7. Which of the following options is not recorded in the Balance sheet? A. Cash B. Rent expenses C. Building D. Goodwill

8. Current assets are also known as: A. Cash B. Assets C. Invested capital D. Working capital

9. Which statement shows the flow of cash and cash equivalents during the financial period? A. Statement of changes in equity B. Cash flow statement C. Balance sheet D. Income statement

10. Which of the following would be consistent with a hedging (maturity matching) approach to financing working capital? A. Financing short-term needs with short-term funds. B. Financing short-term needs with long-term debt. C. Financing seasonal needs with long-term funds. D. Financing some long-term needs with short-term funds.

11.Debt Financing is a cheaper source of finance because of: A. Time Value of Money B. Rate of Interest C. Tax-deductibility of Interest D. Dividends not Payable to lenders.

12. In the budgeting and planning process for a firm, which one of the following should be completed first? Sales budget. Financial budget. Cost management plan. Strategic plan.

13. Accounting information developed primarily for internal decision makers is called A. Financial accounting. B. Management accounting. C. Risk accounting. D. Auditing

14. Which of the following is not a standard financial statement? Income statement Shareholder sheet Balance sheet Cash flow statement

15. The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as A. Current assets B. Fixed assets C. Intangible assets D. Investments

16. The long-term assets that have no physical existence but are rights that have value is known as A. Current assets B. Fixed assets C. Intangible assets D. Investments

17. The primary purpose of the balance sheet is to A. Measure the net income of a business up to a particular point in time. B. Report the difference between cash inflows and cash outflows for the period. C. Report the current value of the business. D. Report the financial position of the reporting entity at a particular point in time.

18. Financial accounting A. Provides information primarily for external decision makers. B. Is required for corporations but probably would not be done by other business entities. C. Provides information primarily for the use of managers of the company. D. Has been practiced in this country for approximately the last 15 years

19. Sunk cost are generally A. Variable cost B. Fixed cost C. Production cost D. Relevant cost

20. Difference between budgeted amounts and actual results is classified as Standard deviation Mean average Weighted average Variances