Question 1 The starting point in the operating budget is the Sales Budget Cash Budget Cost of Goods Sold Budget Pro Forma income Statement Question 2 The end result of the operating budget is the Sales Budget Cash Budget Cost of Goods Sold Budget Pro Forma Income Statement Question 3 Which of the following is not a characteristic of the budgeting process? The budget helps coordinate the activities of the organization The budget forces managers to plan ahead The budget aids in performance evaluation The budget ensures the organization will be profitable Question 4 The second step in preparing the Operating Budget is the Operating Expense Budget Sales Budget Purchases Budget Cost of Goods Sold Budget Question 5 The Master Budget is a Report on past results An overall planning tool A device that ensures organizational success Accessible to senior management only Question 6 To verify budget percentages on the Pro Forma Income Statement, one can perform Horizontal Analysis Return on Investment Debt Ratio Vertical Analysis Question 7 In budgeting, as well as accounting, 'operating' refers to Net Income Current Assets and Current Liabilities Current period revenues and expenses Plant and Intangible Assets Question 8 Salary Expense, Rent Expense, Depreciation Expense, etc. are normally found on the Cost of Goods Sold Budget Purchases Budget Operating Expenses Budget Sales Budget Question 9 The Operating Budget that was demonstrated in this course is a[n] Zero based budget Incremental Budget Continuous budget Family budget Question 10 The Operating Budget flows into the Cash Flows Budget Cash Budget Collections Budget Pro Forma Balance Sheet