Question :
61. Which of the following items will not appear a cash : 1208269
61. Which of the following items will not appear on a cash budget?
A. Expected cash payments
B. Expected credit sales
C. Expected cash collections
D. All of the other answers are correct.
62. Dobson Company expects to begin operating on January 1. The company’s master budget contained the following operating expense budget:
Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of cash to be paid for operating expenses during the month of January is:
A. $25,900.
B. $26,800.
C. $38,800.
D. None of the other answers are correct.
63. Barnwell Company expects to begin operating on January 1. The company’s master budget contained the following operating expense budget:
Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of accumulated depreciation appearing on the company’s March 31 pro forma balance sheet is:
A. $6,000.
B. $1,500.
C. $1,000.
D. $500.
64. Sheffield Company expects to begin operating on July 1, 2012. The company’s master budget contained the following operating expense budget:
Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of commissions payable that would appear on the company’s September 30, 2012 pro forma balance sheet is:
A. $15,000.
B. $18,000.
C. $12,000.
D. $16,000.
65. Which of the following is not considered a pro forma financial statement?
A. Pro forma cash flow statement
B. Pro forma balance sheet
C. Purchases budget
D. Pro forma income statement
66. With regards to financial statements, “pro forma” means:
A. Budgeted.
B. Prepared in advance.
C. Financial condition or position that can be expected if planning assumptions prove correct.
D. All of the other answers are correct.
67. Budgeted sales commissions would appear on the:
A. Sales budget and pro forma balance sheet
B. Sales budget and pro forma income statement
C. Selling, general and administrative budget and pro forma income statement
D. Selling, general and administrative budget and pro forma balance sheet
68. Budgeted cash payments for inventory would appear on the:
A. Inventory purchases budget and the pro forma cash flow statement.
B. Inventory purchases budget and pro forma income statement.
C. Cash budget.
D. Cash budget and pro forma balance sheet.
69. Which of the following accounts would appear on the inventory purchases budget and pro forma balance sheet?
A. Cost of goods sold
B. Sales revenue
C. Accounts payable
D. Accounts receivable
70. Which of the following accounts would appear on the sales budget and the pro forma income statement?
A. Accounts Payable
B. Sales revenue
C. Selling and administrative expenses
D. Accounts receivable
