Checkup 3

Question 1

The beginning point on a cash budget worksheet is ________________.

Answer 1

sales

Question 2

A financial plan used to guide the firm’s actions is usually called a _____________.

Answer 2

budget

Question 3

The overall budget for a firm composed by combining many smaller budgets is often called a _______________- budget.

Answer 3

master

Question 4

Some financial records are legally required by various levels of _________________.

Answer 4

government

Question 5

The emphasis given to the different aspects of the firm in the budgeting process will probably reveal company __________.

Answer 5

policy

Question 6

The 2 financial statements that are summary financial records

Answer 6

income statement and Balance Sheet

Question 7

The 5 different types of budgets for a business firm

Answer 7

master budget, production budget, materials budget, personnel budget, research budget

Question 8

The difference between monthly receipts and payments on a cash budget is the ___________________ that month.

Answer 8

cash gain or loss

Question 9

On a cash budget, sales are not recognized as ______________ until the month in which they are collected.

Answer 9

cash flows

Question 10

Creditors are not usually interested in the financial records of a business firm. (T or F?)

Answer 10

False

Question 11

____________ is dependent upon financial records.

Answer 11

Budgeting control

Question 12

__________ is an integral part of financial planning.

Answer 12

Budgeting

Question 13

The cash budget is a ____________ budget.

Answer 13

comprehensive

Question 14

2 ways the information storage problem has been met by business firms

Answer 14

storage in computing system, microfilming