Question
Which of the following equations is false with respect to the direct materials budget? Multiple Choice Units of raw materials needed to meet production +
Which of the following equations is false with respect to the direct materials budget?
Multiple Choice
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Units of raw materials needed to meet production + desired units of ending raw materials inventory units of beginning raw materials inventory = units of raw materials to be purchased
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Estimated sales in units of finished goods units of raw materials needed per unit of finished goods = units of raw materials needed to meet production
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Required production in units of finished goods units of raw materials needed per unit of finished goods = units of raw materials needed to meet production
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Units of raw materials to be purchased unit cost of raw materials = cost of raw material purchases
Which of the following statements is true regarding master budgets?
Multiple Choice
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Most companies exclude selling and administrative expenses from the master budget because they are period expenses.
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They can be used to estimate a companys need to borrow money in the future.
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They usually include a cash budget and a budgeted income statement, but not a budgeted balance sheet.
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Generally speaking, they are prepared for manufacturing companies, but not merchandising companies.
Which of the following statements is true with respect to a budgeted balance sheet?
Multiple Choice
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The ending cash balance on the balance sheet equals the ending cash balance on the cash budget.
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The ending cash balance on the balance sheet equals the net income on the income statement.
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The accounts payable balance includes the expected cash payments for material purchases that were made during the most recently completed month.
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The accounts receivable balance includes the uncollected credit sales from the most recently completed month plus the expected cash collections from credit sales that were made two months ago.
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