#Please solve this mcq properly. Please don't make a mistake.

MCQ :

1) Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data for the company: Total Sales: January ($50,000), February ($60,000), March ($40,000) April ($30,000). Total cash receipts in March are expected to be:

a) $31,560

b) $35,200

c) $43,500

d) $33,640

2) The cash budget is not necessary to prepare the budgeted income statement.

a) TRUE

b) FALSE

3) Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data for the company: Total Sales: January ($50,000), February ($60,000), March ($40,000) April ($30,000). Total A/R balance for the quarter ending in March is expected to be:

a) $31,560

b) $17,500

c) $33,640

d) $43,500

4) Grandma's Baskets Company expects to manufacture and sell 55,000 baskets in 2011 for $5 each. There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 2011 budgeted income statement?

a) $254,000

b) $275,000

c) $250,000

d) $246,000

5) Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data for the company: Total Sales: January ($50,000), February ($60,000), March ($40,000) April ($30,000). Total A/R balance for the quarter ending in April is expected to be:

a) $43,500

b) $17,500

c) $12,600

d)$33,640

6) Budgeted financial statements are not referred to as pro forma statements.

a) FALSE

b) TRUE

7) Which budget is necessary to prepare the budgeted Income Statement?

a) capital expenditure budget

b) budgeted statement of cash flows

c) cash budget

d) DM Usage budget

8) Which of the following is an objective of the budgeting process?

a) recruiting companys key employees

b) the quality of the materials

c) To communicate management's plans throughout the entire organization.

d) To ensure that the company continues to grow.

9) A master budget:

a) is an aid to coordinating what needs to be done to implement a plan

b) should not be altered after it has been agreed upon

c) includes broad expectations and visionary results

d) includes only financial aspects of a plan and excludes nonfinancial aspects

10) When preparing a production budget, the required production equals:

a) budgeted sales + desired ending inventory - beginning inventory.

b) budgeted sales - beginning inventory - desired ending inventory.

c) budgeted sales + beginning inventory - desired ending inventory.

d) budgeted sales + beginning inventory + desired ending inventory.