Please answer the following questions:

Q1 What is true regarding continuous budgets?

a. The oldest month or quarter is not removed from the budget.

b. The oldest month or quarter is removed from the budget.

c. Regardless of the time of year, it always covers 12 months or four quarters.

d. Answers b and c

Q2 Which of the following statements is false regarding zero-based budgeting?

a. Many organizations use zero-based budgets to address issues with increases in their annual operating budgets.

b. Zero-based budgets are prepared from the ground up, starting with zero for every item.

c. Zero-based budgets are prepared from the top down, starting with last years budget.

d. None of the above are false.

Q3 Which of the following is not included in the master budget?

a. Sales budget

b. Cash budget

c. Budgeted Income Statement

d. All of the above are included in the master budget

Q4 A company is in the process of preparing their annual budgets. The company should start with which budget?

a. Master budget

b. Sales budget

c. Budgeted Income Statement

d. Production budget