QUESTION 13

1. Budgets are generally regarded as having several areas of usefulness. Which of these is not one of them?

   		They help co-ordinate the various sectors of the business.
   		They can facilitate control within the business.
   		They tend to promote forward thinking.
   		They can be used to allocate direct expenses.

1 points

QUESTION 14

1. The closing cash at bank balance for Werich Ltd over the past three months has been increasing by $100,000 per month. The best advice to management would be to:

   		pay creditors more slowly.
   		sell off more non-current assets.
   		invest the surplus cash into income-earning deposits.
   		increase the selling price per unit of product.

1 points

QUESTION 15

1. Which of the following items would NOT be included in a cash budget?

   		Cash dividends paid to shareholders
   		Depreciation on motor vehicles
   		Purchase of non-current asset for cash
   		Cash sales

1 points

QUESTION 16

1. Sales in December were $960,000. Projected sales for the first quarter of 2009 are: January $1,080,000 February $1,200,000 March $1,280,000

   Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.

   Calculate the cash collected from debtors for the month of February.

   		$1,200,000
   		$864,000
   		$1,080,000
   		$960,000