Question : 81. Which of the following accounts would appear a budgeted balance : 1225631

 

81. Which of the following accounts would appear on a budgeted balance sheet? 

A. Income tax expense.

B. Accounts receivable.

C. Sales commissions.

D. Depreciation expense.

E. All of these.

82. Which of the following budgets must be completed before a cash budget can be prepared? 

A. Capital expenditures budget.

B. Sales budget.

C. Merchandise purchases budget.

D. General and administrative expense budget.

E. All of these.

83. Which of the following would not be used in preparing a cash budget for October? 

A. Beginning cash balance on October 1.

B. Budgeted sales and collections for October.

C. Estimated depreciation expense for October.

D. Budgeted salaries expense for October.

E. Budgeted capital equipment purchases for October.

84. Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: 

A. Borrow $4,500.

B. Borrow $2,500.

C. Borrow $10,000.

D. Repay $7,500.

E. Repay $2,500.

85. A managerial accounting report that presents predicted amounts of the company’s assets, liabilities, and equity as of the end of the budget period is called a(n): 

A. Rolling balance sheet.

B. Continuous balance sheet.

C. Budgeted balance sheet.

D. Cash balance sheet.

E. Operating balance sheet.

86. Julia’s Candy Co. reports the following information from its sales account and sales budget:

  

Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is: 

A. $30,000.

B. $82,500.

C. $112,500.

D. $120,000.

E. $202,500.

87. A managerial accounting report that presents predicted amounts of the company’s revenues and expenses for the budget period is called a: 

A. Budgeted income statement.

B. Budgeted balance sheet.

C. Master plan.

D. Rolling income statement.

E. Continuous income statement.

88. Lara Company’s budget includes the following credit sales for the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Lara Company expect to collect in November as a result of current and past credit sales? 

A. $19,700.

B. $28,500.

C. $30,000.

D. $31,100.

E. $33,900.

89. In preparing a budgeted balance sheet, the amount for Accounts Receivable is primarily determined from: 

A. The purchases budget.

B. The sales budget.

C. The capital expenditures budget.

D. The budgeted income statement.

E. The selling expenses budget.

90. Long-term liability data for the budgeted balance sheet is derived from: 

A. The cash budget and capital expenditures budget.

B. The cash budget and sales budget.

C. The cash budget and budgeted income statement.

D. The sales budget and production budget.

E. The asset budget and debt budget.

 

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