Which of the following isnottrue about a cash budget?

a)A cash budget sets out all cash receipts and payments that a business expects to make over a period of time.

b)Cash budgets are usually prepared on a month-to month basis.

c)Cash budgets show the expected bank balance at the end of the month.

d)Cash budgets include personal cash receipts and expenses.

A cash budget for the six months ended 30 September 2017 shows an anticipated overdraft of approximately 9,500. Which of the following would reduce the expected overdraft?

a)Allowing customers two months' credit, instead of one month's credit, in which to pay.

b)Suppliers' purchases being made for cash, instead of one month's credit.

c)Assets being leased, rather than purchased for cash, in 2017.

d)Charging depreciation on fixed assets at 25% on the straight-line basis, rather than 20%.

Mark sells goods at a gross profit margin of 30%. Which of the following statements is true?

a)Goods sold for 800 will have cost Mark 240.

b)Goods sold for 800 will have cost Mark 560.

c)Goods sold for 800 will have cost Mark 320.

d)Goods sold for 800 will have cost Mark 392.