Question : 51. Which of the following would appear a selling and administrative : 1208268

51. Which of the following would appear on a selling and administrative expense budget, but would not appear on a schedule of cash payments for selling and administrative expenses? 
A. Cost of goods sold
B. Depreciation expense
C. Salary expense
D. Sales expense

52. Which of the following items typically found on the selling and administrative expense budget will also impact the cash budget? 
A. Utilities
B. Administrative salaries
C. Advertising expense
D. All of the other answers are correct.

53. Select the correct statement regarding the selling and administrative (S&A) expense budget. 
A. The S&A budget is prepared before the sales budget.
B. The S&A budget is prepared after the cash budget.
C. The S&A budget is prepared before the pro forma income statement.
D. All of the other answers are correct.

54. Which of the following budgets or schedules uses data contained in the selling and administrative expense budget? 
A. Cash payments schedule
B. Cash receipts schedule
C. Inventory purchases budget
D. Sales budget

55. The following budget information is available for the Circle C Company for January 2012:
  
All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be: 
A. $116,250.
B. $123,750.
C. $131,250.
D. $156,250.

56. Budgeted depreciation expense would not appear on a: 
A. Cash budget.
B. Budgeted income statement.
C. Selling and administrative expense budget.
D. All of the other answers are correct.

57. Which of the following cash budget equations is incorrect? 
A. Period one ending cash balance = period two beginning cash balance
B. Beginning cash + cash receipts = total cash available
C. Cash payments + cash cushion = total cash needed
D. Cash available – cash needed = cash requirements

58. Harker Company budgeted the following transactions for April 2012:
  
The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. What is the amount of the cash surplus or shortage? 
A. $20,000 surplus
B. $40,000 shortage
C. $20,000 shortage
D. There is no surplus or shortage.

59. Banks Industries has budgeted the following information for March:
  
If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month. The company had no debt before March 1st. The shortage or surplus of cash before considering cash borrowed in March would be: 
A. $8,000 shortage.
B. $50,000 shortage.
C. $58,000 shortage.
D. $58,000 surplus.

60. Premier Company has budgeted the following information for June:
  
If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1st. The amount of interest paid on July 1 would be: 
A. $800.
B. $580.
C. $500.
D. $442.