Unit 7 Financial (Cash) Budget Concepts

Cash receipts must be at least as much as sales.

False

If the initial cash budget indicates a cash deficiency, the company must go out of business.

False

Budgeted operating income includes

budgeted cost of goods sold.

The selling and administrative expenses budget includes

variable cost of selling.

Cash budgets are often prepared monthly or even weekly.

True

The cash budget includes the beginning balance of cash, cash receipts, cash disbursements, and the ending balance of cash.

True

The selling and administrative expenses budget is part of the operating budgets.

True