Chapter 9: Review

The comprehensive planning document for the entire organization is called the ____ budget.

master

The operating budgets culminate in the budgeted

Income statement

Which of the following is true? Only debit car transaction fees are limited by law. Only credit card transaction fees are limited by law. Neither credit card nor debit card transaction fees are limited by law. Bot credit card and debit card transaction fees are limited by law.

Only debit car transaction fees are limited by law.

Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

Budgetary slack

Which budget reflects the company's plans to invest in new property, plant, and equipment?

Capital expenditures budget

Which of the following budgets is unique to merchandising companies? Production budget Cost of Goods Sold, Inventory, and Purchases budget Direct materials budget Operating expenses budget

Cost of Goods Sold, Inventory, and Purchases budget

Which of the following are non-cash expenses that will always result in differences between the budgeted operating expenses for a given period and the budgeted cash payments for the same period?

Depreciation expense and bad debt expense

Benefits of budgeting include

Planning, Coordination and communication, bench-marking.

Which of the following budgets must be prepared first, as it serves as a basis for most other budgets? Cash Production Operating Expenses Sales

Sales Budget

Which of the following is true for merchants that accept payments made by Visa, MasterCard, and other forms of "plastic"?

Transaction fees should be budgeted for in the operating expenses budget.