Question 1 4 pts Management by Exception directs management's attention to Time El O all budget variances Attempt 5 Minut O only those variances that exceed 10% O only those variances that exceed the benchmark management has set O no variances Question 2 4 pts Measuring Flexible Budget variances help managers Measure goals against performance O Measure the efficiency of the budgeting process O assist in financial reporting activities O read financial statements Question 3 4 pts Management by Exception is an example of which accounting concept? O Cost O Materiality O Matching O DisclosureQuestion 4 4 pts Flexible budgets eleminate which variance? Sales Volume O Direct Labor O Contribution Margin Fixed Cost Question 5 4 pts The ultimate responsibility for the budgetary process lies with Senior Management O Accounting O Operations O Auditors Question 6 4 pts The flexible budget formual is based on estimates. Master Budget Flexible Budget O Financial Statement O Pro FormaQuestion 7 4 pts Sales-Variable Cost: 0 Operating Revenue 0 Net Income 0 Fixed Costs 0 Contribution Margin Question 8 4 pts Contribution Margin indidcates what is left to be \"contributed to" 0 Net Income 0 Sales 0 Variable Costs 0 Fixed Costs Question 9 4 pts The overall nancial plan for the entire organization is called the _______ 0 Flexible Budget 0 Master Budget 0 Master Plan 0 Planning Master Question 10 4 pts The Master Budget consists of O The Operating, Capital and Financial Budgets O The Operating, Flexible and Cash Budgets O The Sales, Cpllections and Cost pf Goods Sold Budget 0 The Purchases. Operating Expense and Direct Materials Budget Question 11 4 pts "Pro Forma" Financial Statements means the Financial Statements are 0 in the proper format 0 in good standing with the government 0 are accepted by the public 0 a re budgeted Question 12 4 pts The purpose of the operating budget is to prepare the 0 Income Statement 0 Pro Forma Balance Sheet 0 Balance Sheet 0 Pro Forma Income Statement D Question 13 4 pts The purpose of the capital and financial budgets are to prepare the Income Statement Pro Forma Balance Sheet O Balance Sheet O Pro Forma Income Statement D Question 14 4 pts The Statement of Cash Flows breaks cash activities into which three categories? O Assets, Liabilities and Equity Revenues, Expenses and Net Income O Operating, Investing and Financing O Debits, Credits and T-accounts D Question 15 4 pts The sale of a bulldozer will be classified as which type of activity? O Operating O Investing O Financing O RevenueQuestion 16 4 pts The sale of a common stock will be classied as which type of activity? 0 Operating 0 Investing 0 Financing 0 Revenue Question 17 4 pts The Financial Accounting Standards Board prefers the Statement of Cash Flows be prepared using the direct method because 0 The SEC requires it Q Auditors prefer the direct method 0 It is more easily understood by nancial statement readers 0 It is a useful tool in the budgeting process Question 18 4 pts Most Accountants prefer the Statement of Cash Flows be prepared using the indirect method because 0 It is more complicated O Auditors prefer the indirect method 0 It reconciles cash to net income 0 The IRS requires cash be traced to net income Question 19 4 pts The direct and indirect methods of cash ow statement preparation affects _________ ___ activities only. 0 Operating 0 Investing 0 Financing 0 Depreciation Question 20 4 pts Ending Cash on the Statement of Cash Flows must "tie" to the Cash balance on the 0 Income Statement 0 Cash Budget 0 Balance Sheet 0 Form 1040 Question 21 4 pts A continous budget can also be called a " _______________ " budget. 0 continual 0 static 0 latest 0 rolling D Question 22 4 pts Measuring percentage changes in comparative financial statements is called O Vertical Analysis O Variance Analysis O Horizontal Analysis O Investment Analysis D Question 23 4 pts Measuring percentage of certain financial statement items in a single period is called O Vertical Analysis O Variance Analysis O Horizontal Analysis O Investment Analysis D Question 24 4 pts In horizontal analysis, the "base year" is O prior year O current year least current year O an arbitrary yearQuestion 25 4 pts Common Size Financial Statements are an example of 0 Horizontal Analysis (0 Vertical Analysis 0 Ratio Analysis 0 Economic Analysis