PREPARE & MONITOR BUDGETS

Question 1

Budgets should be reviewed on a regular basis because..... (select all that apply) :

Accepted Answer

Costs & expenses are within or below the budgeted guidelines, We require profit to be above the budgeted guidelines, Revenue must be within or above the budgeted guidelines

Question 2

What are the external forces that could affect the budgeting process?(Choose 3 correct answers)

Accepted Answer

Global economic changes, Competition, Changes in laws

Question 3

What financial reports can you use to monitor the financial performance of your new business?

Accepted Answer

All of the above

Question 4

Wages Budget is $10,000 but your wages Actual is $12,000. Do you consider this as:

Accepted Answer

Unfavourable

Question 5

If a new restaurant is about to open mid year, this has no relevance with preparing budgets?

Accepted Answer

FALSE

Question 6

What could be the reason why your Gross Profit has reduced?

Accepted Answer

Lower sales than estimated and higher stock holdings (COGS)

Question 7

What is meant by budget timelines?

Accepted Answer

It is the amount of time that is expected to achieve goals

Question 8

Budgets are a communication tool that enables all to understand the goals of the organization.

Accepted Answer

TRUE

Question 9

What is a "Budget Variance"?

Accepted Answer

It's the difference between Budget figures & Actual figures

Question 10

What does the acronym 'GST' stand for?

Accepted Answer

Goods & Service Tax

Question 11

What are the benefits of Budgeting? (Choose 3 correct answers)

Accepted Answer

Budgets help evaluate business performance, Budgets motivate staff, Budgets provide direction

Question 12

Sales Budget is $90,000 but sales Actuals is $90,500. Is this .....

Accepted Answer

Favourable

Question 13

What is meant by "budgeted KPI's"?

Accepted Answer

Achieving the organisational goals within a given timeframe

Question 14

Once the budget has been created it must be presented in a clear & concise format.

Accepted Answer

TRUE

Question 15

What is departmental budgeting?

Accepted Answer

A tool projecting the incomes and expenses of a department

Question 16

What are the internal forces that could affect the budgeting process?(Choose 3 correct answers)

Accepted Answer

Rebranding, Business retructuring, New products

Question 17

You should be reviewing monthly financial statements for the following reasons: (select 2)

Accepted Answer

To safeguard against misuse of funds or employee fraud, To monitor budget performance

Question 18

A budget should be analysed & reviewed before it is presented in its final format.

Accepted Answer

TRUE

Question 19

To enable a budget to be created the following data must be gathered: Select 2 correct answers:

Accepted Answer

Historical data, Expected sales units

Question 20

What does the acronym 'BAS' stand for?

Accepted Answer

Business Activity Statement

PREPARE & MONITOR BUDGETS

Questions 20

PREPARE & MONITOR BUDGETS

Questions 20