By regularly reviewing their budgets, businesses are able to determine if they are ...

Following their financial plans

A master budget is made up of information from

specialized budgets that are generated by individual departments.

What is the most important reason for business budgeting?

To know what the business finances are

An estimate of income and expenditure for a period of time

Which of the following is an advantage of a rolling budget?

Allows you to have a year-long budget in place at all times

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BM II 5.02

10 termsStudBud Administration24 plays

Nature of budgets

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Questions 10

Answers

1
The difference between the budgeted amount and the actual amount spent.
deficit
surplus
budget
budget variance
2
By regularly reviewing their budgets, businesses are able to determine if they are ...
Paying interest to customers
Following their financial plans
Receiving discounts from vendors
Offering loans to employees
3
In business, budgets are prepared for a specific time period, usually a
quarter
month
calendar year
fiscal year
4
A master budget is made up of information from
specialized budgets that are handed down from top management.
specialized budgets that are generated by individual departments.
the previous year's budget, with a 10% increase.
internal sales forecasts and the probable level of competition.
5
What is the most important reason for business budgeting?
To see how big the business is
To know when the business is open
To understand what sales targets are
To know what the business finances are
6
What is budget?
A type of fish
A checking account
A savings account
An estimate of income and expenditure for a period of time
7
Which of the following is an advantage of a rolling budget?
It sets an annual budget that does not change
Allows you to have a year-long budget in place at all times
It has to be consulted less frequently by managers
It requires less effort than an annual budget
8
Budgets can be described in terms of
money, maps, and management
account books, bills, and bankruptcy
savings, sales, and success
desires, debt, and discipline
9
After a business designates categories of expenses in its budget, it
attaches a time limit
applies a formula.
appoints an accountant
allocates a dollar amount.
10
Which of the following often prepare budgets in business:
Middle managers
Sales cashiers
All employees
Inventory clerks

BM II 5.02 Flashcards | StudBud