1. XYZ Co.s expected sales for upcoming months are as follows:

   	Sales revenue
   June........................	$60,000
   July........................	$80,000
   August....................	$100,000

   All sales are on credit. Suppose XYZ collects 60% of credit sales in the current month, and collects 40% in the following month. What is the balance of the companys accounts receivable at the end of July?

   	A.	$48,000
   	B.	$24,000
   	C.	$32,000
   	D.	$40,000

1. Which of the following is FALSE regarding the budgeting system?

   	A.	The budgeting system provides a means of allocating resources to those parts of the organization where they can be used most effectively.
   	B.	The budgeting system aims to communicate management's plans throughout the entire organization.
   	C.	The budgeting system generates a detailed qualitative plan for acquiring and using financial and other resources over a specified forthcoming time period.
   	D.	The budgeting system helps managers uncover potential bottlenecks before they occur.