M3 part 2

Question 1

a plan is useless if it is not quantified

Answer 1

planning and controlling

Question 2

quantified plan is represented through

Answer 2

• budgets and projected
• pro-forma financial statements

Question 3

budget preparation

Answer 3

• sales budget
• production budget
• budgeting cash
• cash budget

Question 4

financial plan estimates a company’s total revenue in a specific time period

Answer 4

sales budget

Question 5

sales budget focuses on two things….

Answer 5

• number of product sold
• price at which they are sold to

Question 6

predict how the company will perform

Answer 6

sales budget

Question 7

document that expresses the number of units of a specific product that an organization must produce to match its estimated sales quantity

Answer 7

production budget

Question 8

part of overall operating budget

Answer 8

production budget

Question 9

tracking the time of your income and expenses to make sure you have enough from week to week

Answer 9

budgeting cash

Question 10

you need to track your income, resources and expenses for at least

Answer 10

one month

Question 11

company’s estimation of cash inflows and outflows over a specific period of time

Answer 11

cash budget

Question 12

to determine whether it has sufficient cash to continue operating over the given time frame

Answer 12

cash budget

Question 13

a tool of the company to set an overall goal of what the company’s performance and position will be for and as of the end of the yr

Answer 13

projected financial statements

Question 14

sets target to control and monitor the activities of the company

Answer 14

projected financial statements