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FIU ACG 3301 - Review Questions

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Review QuestionsACG 3301 F11Test 3Name____________________________________________________________________________PID_____________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Newton Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $12,000. Budgeted cash receipts are $84,000, while budgeted cash disbursements are $72,000. Newton Company wants to have an ending cash balance of $40,000. The excess (deficiency) of cash available over disbursements for the month would be: 1) _______ A)$112,000 B) $24,000 C) $168,000 D) $(24,000) 2) Clark Company has beginning inventory of 16,000 units and expected sales of 23,000 units. If the desired ending inventory is 18,000 units, how many units should be produced? 2) _______ A)57,000 B) 21,500C) 11,000 D) 25,000 3) When developing the budgets each year, most companies use: 3) _______ A)zero-based budgets. B) participative budgeting. C)a top-down approach. D) slack-based budgets. 4) Which of the following budgets or financial statements is part of the operating budget? 4) _______ A)Sales budget B) Capital expenditures budget C)Cash budget D)Budgeted balance sheet 5) Warehouse Corporation collects 30% of a month's sales in the month of sale, 65% in the month following sale, and 5% in the second month following sale. Budgeted sales for the upcoming four months are:April budgeted sales $100,000May budgeted sales $150,000June budgeted sales $230,000July budgeted sales $180,000The amount of cash that will be collected in July is budgeted to be: 5) _______ A)$171,500. B) $211,000. C) $203,500. D) $54,000. 6) The budget committee does all of the following EXCEPT: 6) _______ A)removes unwarranted slack. B) approves the final budget. C)reviews submitted budgets.D)determines the bonuses awarded to those who achieve budget targets. 7) Merchandising companies prepare all of the following budgets EXCEPT: 7) _______ A)direct materials. B) sales. C)operating expense. D)cost of goods sold, inventory and purchases. 8) Samson Company prepared the following purchases budget:Month Budgeted PurchasesJune $35,600July $42,500August $39,600September $45,800October $49,400All purchases are paid for as follows: 20% in the month of purchase, 60% in the following month, and 20% two months after purchase.What are the cash disbursements in August for June purchases? 8) _______ A)$21,360B) $8,120 C) $27,480 D) $7,1201) B 2) D 3) B 4) A 5) B 6) D 7) A 8)


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FIU ACG 3301 - Review Questions

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