Multiple choice

8.

Usually, the first step in the production of the master budget is the:

a.

Production budget

b.

Cash budget

c.

Sales budget

d.

Sales forecast

Question 9

A firm can finance its long-term financing by means of the following:

a.

Mortgage loan, equity, trade credit, bonds

b.

Bonds, debentures, equity, mortgage loan

c.

Trade credit, equity, overdraft, mortgage loan

d.

Equity, bank overdraft, debentures, bonds

Question 10

Financial plans do not involve predictions of the economic outlook

a.

True

b.

False