The purposes of budgeting...

Aids decision-making by providing a standard to measure actual performance, Assists planning by predicting what is likely to occur

Depreciation is best described as:

The allocation of the cost of a non-current asset over its useful life

How are budgeted reports different from actual reports?

Budgets report future rather than historical events, Budgets use estimates/predictions rather than actual verifiable data

What is the purpose of a variance report?

Compare actual & budgeted figures so problems can be identified & corrected

Which of the following is not a reason why a business would use an asset register?

To record the cash payments related to assets

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Accounting Unit 2 Chapter 16 & 17

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Answers

1
The purposes of budgeting...
Aids decision-making by providing a standard to measure actual performance
Assists planning by giving options
Aids decision-making by weighing different possibilities
Assists planning by predicting what is likely to occur
2
Which would NOT be an example of a tangible asset?
Fridge
Oven
Good will
Uniform
3
Depreciation is best described as:
The use of a non-current asset
The allocation of the cost of a non-current asset over its useful life
The number of years a business will use a non-current asset
The amount paid each period for a non-current asset
4
The value of a non-current asset that will not be consumed by the business during its useful life, is known as:
Residual Value
Historical Cost
Fair Value
Depreciable Value
5
How are budgeted reports different from actual reports?
Budgets report future rather than historical events
Budgets report historical rather than future events
Budgets use estimates/predictions rather than actual verifiable data
Budgets use actual verifiable data rather than estimates/predictions
6
What is the purpose of a variance report?
Compare actual & budgeted figures so problems can be identified & corrected
Identify actual and budgeted figures so problems can be compared
Identify problems so actual and budgeted figures can be corrected
Compare actual figures so problems can be identified & corrected
7
Which of the following is not a reason why a business would use an asset register?
To assist planning for the purchase of new assets
To identify when assets need servicing
To have a reference to identify the theft of any assets
To record the cash payments related to assets
8
The method of depreciation that allocates the same expense each period is called....
Cash basis of accounting
Straight line depreciation
Diminishing value
Reducing balance method
9
Timmy's is a restaurant that sells the best grilled chicken. Which of the following would be a non-current asset?
Oven
Salad
Chicken
Sauce
10
How can variances be expressed?
Decrease
Unfavourable
Favourable
Increase

Accounting Unit 2 Chapter 16 & 17 Flashcards | StudBud