SPRING 2019 TRUE OR FALSE 1) The capital expenditures budget summarizes the effects of financing activities on cash. 2) The master budget includes individual budgets for sales, production or purchases, various expenses, capital expenditures, and cash. 3) Activity-based budgeting is a budget system based on expected activities and their levels for the budget period, which helps management plan for the resources required. 4) The sales budget is derived from the production budget. MULTIPLE CHOICE 5) Budgets that are periodically revised and have new periods added to replace those that have lapsed are called: A) Production budgets. B) Sales budgets. C) Cash budgets. D) Rolling budgets E) Capital expenditures budgets. 6) A plan showing the planned sales units and the revenue to be derived from these sales, and is the usual starting point in the budgeting process, is called the: A) Operating budget. B) Business plan. C) Income statement budget. D) Merchandise purchases budget. E) Sales budget. 7) A managerial accounting report that presents predicted amounts of the company's assets iabilities, and equity as of the end of the budget period is called a(n): ) Rolling balance sheet. ) Continuous balance sheet. ) Budgeted balance sheet. ) Cash balance sheet. Operating balance sheet