ACTIVITY 1: 1. Explain the benefits of Budgeting. 2. Illustrate and explain the Budgeting Process. 3. Explain the following: a. Operating Budgets b. Financial Budgets ACTIVITY 2: Use this list of terms to complete the sentences that follow. Long-range planning Participative budgeting Sales forecast Operating budgets Master budget Financial budgets a. A shows potential sales for the industry and a company's expected share of such sales. b. are used as the basis to prepare the budgeted income statement. c. The is a set of interrelated budgets that constitutes a plan of action for a specified time period. d. identifies long-term goals, selects strategies to achieve these goals, and develops policies and plans to implement the strategies. e. Lowerlevel managers are more likely to perceive results as fair and achievable under a approach. f. focus primarily on the cash resources needed to fund expected operations and planned capital expenditures