A cash budget assists in planning by:

Allowing the owner to take action to avert a cash deficit

A budgeted income statement shows:

the expected net profit or loss for the period

A variance report assists planning by:

Highlighting errors in previous budgets to improve accuracy

The sequence of the budgeting process involves:

Budgeted Reports, Actual Reports, Variance Reports Decisions

A variance report compares

Actual and budgeted figures during the reporting period

Cash Budgeting is the process of:

Estimating the cash position of a business

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Unit 1 Accounting Budgeting Quiz 1

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VCE Unit 1 Accounting Budgeting

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Questions 10

Answers

1
A cash budget assists in planning by:
showing the projected net profit figure
Allowing the owner to take action to avert a cash deficit
using historical data to create a benchmark
showing the cash balance at the end of the month
2
In preparing for a cash surplus, a business owner could:
Take less drawings
Increase loan repayments
Defer loan repayments
Sell off non-current assets
3
A budgeted income statement shows:
The revenue minus expenses for the period
The income from the sale of a non current asset
the expected net profit or loss for the period
Reliable data based on source document evidence
4
A business owner can undertake the following action if a cash deficit is predicted by a budget:
Purchase a non-current asset
Introduce more capital
Increase drawings
Increase payments
5
A variance report assists planning by:
Recording non current assets a their purchase price
Allowing the owner to reduce unnecessary expenses
Showing the business owner the cash balance a start
Highlighting errors in previous budgets to improve accuracy
6
The sequence of the budgeting process involves:
Variance Reports, Actual Reports, Decision-making
Budgeted Reports, Variance Reports, Decisions-making
Budgeted Reports, Actual Reports, Variance Reports Decisions
Decisions Budgeted Reports, Actual Reports, Variance Reports
7
In the case of a net loss being predicted by a budget, the least effective strategy would be:
Reduce essential staffing
Seek cheaper suppliers
Increase drawings
Increase advertising
8
A variance report compares
Surplus and cash balance at end during the reporting period
Revenues to expenses incurred during the reporting period
Actual and budgeted figures during the reporting period
Cash receipts to cash payments during the reporting period
9
A budget breaches the qualitative characteristic of:
Understandability
Verifiability
Relevance
Historical Cost
10
Cash Budgeting is the process of:
Estimating the net profit of a business
Predicting the revenue and expenses of a business
Estimating the cash position of a business
Determining the cash position of a business

Unit 1 Accounting Budgeting Quiz 1 Flashcards | StudBud