Accounting Chapter 8 Smartbook

To prepare a budgeted balance sheet as of December 31, 2016, data is needed from the:

balance sheet as of December 31, 2015

A budgeted balance sheet is developed using data from the __________________ of the budget period and data contained in the various schedules.

beginning

A detailed plan for the future that is usually expressed in formal quantitative terms is a(n) _________________.

budget

A company's planned net profit that serves as a benchmark against which subsequent company performance can be measured is shown on the budgeted ___________________ ____________________.

income statement

Using budget assumptions when preparing the master budget:

makes it easier to answer "what-if" questions

All costs of production other than direct materials and direct labor are shown on the __________________ budget.

manufacturing overhead

All costs of production other than direct materials and direct labor are shown on the ___________________ __________________ budget.

manufacturing overhead

A number of separate but interdependent budgets that formally lay out a company's sales, production, and financial goals is contained in the _________________ budget.

master

A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the _________________ budget.

master

The amount of goods for resale to be purchased from suppliers during the period is shown on the _____________________ __________________ budget.

merchandise purchases

The amount of goods to be purchased from suppliers during the period is shown on the ________________ budget.

merchandise purchases

In a manufacturing company, the _________________ budget shows the number of units that must be manufactured to satisfy sales needs and provide for the desired ending inventory.

production

In a manufacturing company, the __________________________ budget shows the number of units that must be manufactured to satisfy sales needs and provide for the desired ending inventory.

production

To calculate total sales on the sales budget, multiply budgeted sales in units by:

sales price per unit

Budgeted expenses for areas other than manufacturing are shown on the ____________________ budget.

selling and administrative

In large organizations, many smaller individual budgets submitted by department heads and other responsible people comprise the _________________ budget.

selling and administrative

Which of the following budgets shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?

Budgeted income statement

Which of the following is not found in the financing section of the cash budget?

Cash deficiency

Which of the following is needed to prepare a sales budget?

The budgeted number of units to be sold

A detailed plan for the future that is usually expressed in formal quantitative terms is:

a budget

The receipts section of the cash budget lists:

all cash inflows, except from financing

Master budget schedules:

answer several key questions for a company are based on estimates and assumptions

The annual master budget file includes the ___________________ from last year because it is needed for the schedule of expected cash collections.

balance sheet

The annual master budget file includes the ____________________ from last year because it is needed for the schedule of expected cash collections.

balance sheet

The ending finished goods inventory budget computes the:

cost of unsold units

The number of working hours required to satisfy the production budget is shown on the __________________ _________________ budget.

direct labor

Working hours required to satisfy the production budget are shown on the _________________ budget.

direct labor

In a manufacturing company, the __________________ ___________________ budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.

direct materials

In a manufacturing company, the _____________________ budget details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories

direct materials

The section on the cash budget that summarizes all cash payments that are planned for the budget period is the cash _____________________ section.

disbursement

Payments for direct materials, direct labor, and manufacturing overhead costs are all listed in the ____________________ section of the cash budget.

disbursements

The cost of unsold units is computed on the ___________________ budget.

ending finished goods inventory