ACC 560 Week 7 Quiz – Strayer NEW
Click On The
Link Below to Purchase A+ Graded Material
Instant Download
Week 7 Quiz 6:
Chapters 9 and 10
Chapter 9
TRUE-FALSE STATEMENTS
1. Budgets are statements of management's plans stated in financial
terms.
Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
2. A benefit of budgeting is that it provides definite objectives
for evaluating performance.
Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
3. A budget can be a means of communicating a company's objectives
to external parties.
Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
4. A budget can be used as a basis for evaluating performance.
Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
5. A well-developed budget can operate and enforce itself.
Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
6. The budget itself and the administration of the budget are the
responsibility of the accounting department.
Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
7. Effective budgeting requires clearly defined lines of authority
and responsibility.
Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Business Economics
8. The flow of input data for budgeting should be from the highest
levels of responsibility to the lowest.
Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Budget Preparation
9. Budgets can have a positive or negative effect on human behavior
depending on the manner in which the budget is developed and administered.
Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Risk Management, AICPA PC: Interaction, IMA:
Performance Measurement
10. A budget can facilitate the coordination of activities among the
segments of a large company.
Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Budget Preparation
11. The longer the budget period, the more reliable the estimates of
future outcomes.
Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving,
IMA: Budget Preparation
12. The budget committee has the responsibility for coordinating the
preparation of the budget.
Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Leadership,
IMA: Budget Preparation
13. The budget is developed within the framework of a sales
forecast.
Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
14. Budgeting and long-range planning are two terms that describe
the same process.
Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
15. Long-range plans are used more as a review of progress toward
long-term goals rather than an evaluation of specific results to be achieved.
Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
16. The master budget reflects management's long-term plans
encompassing five years or more.
Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
17. The master budget consists of operating and financial budgets.
Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
18. Financial budgets must be completed before the operating budgets
can be prepared.
Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
19. The direct materials budget must be completed before the
production budget because the quantity of materials available for production
must be known.
Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
20. The number of direct labor hours needed for production is
obtained from the production budget.
Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
21. A manufacturing overhead budget is not needed if the company
develops a predeter-mined overhead rate to apply overhead.
Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
22. The manufacturing overhead budget generally has separate
sections for variable, mixed, and fixed costs.
Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
23. A production budget should be prepared before the sales budget.
Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
24. The direct materials budget contains both quantity and cost
data.
Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA:
Budget Preparation
25. The budgeted income statement indicates the expected
profitability of operations for the next year.
Ans: LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
26. If a monthly cash budget is prepared properly, there will never
be a cash deficiency at the end of any month.
Ans: LO: 5, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
27. The budgeted balance sheet is prepared entirely from the budgets
for the current year.
Ans: LO: 5, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving,
IMA: Budget Preparation
28. The starting point when budgeting for a not-for-profit
organization is generally to budget expenditures first.
Ans: LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
29. A merchandiser has a merchandise purchases budget rather than a
production budget.
Ans: LO: 6, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
30. A critical factor in budgeting for a service firm is to
determine the amount of products to purchase.
Ans: LO: 6, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
31. The
budget itself and the administration of the budget are entirely accounting
responsibilities.
Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem
Solving, IMA: Budget Preparation
32. Financial
planning models and statistical and mathematical techniques may be used in
forecasting sales.
Comments
Post a Comment