QUESTION 17

1. A master budget is best described as:

   		a budget for a manufacturing business.
   		the one and only budget that is of interest to management.
   		a summary of a number of interrelated budgets.
   		a budget of the cash flows predicted for a future period of time.

1 points

QUESTION 18

1. A common feature of most cash budgets is:

   		the budget period is broken into months.
   		a columnar format.
   		a section for non-cash expenses such as doubtful debts and depreciation.
   		A and B

1 points

QUESTION 19

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 total cash collected from sales for the month of March.

   		$1,456,000
   		$256,000
   		$1,280,000
   		$1,216,000

1 points

QUESTION 20

1. If the opening balance of cash for one month is $20,000, cash receipts are estimated to be $389,000 and cash payments are estimated as $300,000 the opening cash balance at the beginning of the next month is:

   		$69,000
   		$109,000
   		$89,000
   		cannot be calculated