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  3. Liberty ACCT 212 Chapter 7 Reading Assignment Answers Complete Solutions

Liberty ACCT 212 Chapter 7 Reading Assignment Answers Complete Solutions

Complete many different versions to get an A on your grade!

The below shown is just one version sample.

The formula to compute the merchandise inventory to be purchased is

Activity-based budgeting is a budget system based on expected .

Which of the following items would be included on the capital expenditures budget? (Check all that apply.)

All of the following are operating budgets except:

A merchandising company’s sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales personnel are paid a salary plus commission. Salaries are expected to be $5,000 per month and the commission is 10% of sales. Additionally, advertising is expected to be $600 per month. The total selling expenses for the quarter will be $ .

A manufacturing company would typically prepare all of the following budgets except:

All of the following are guidelines for budgeting except:

A manufacturer will prepare a budget which shows the number of units to be produced during a period.

A company has the following budget information: Sales $118,800; COGS $48,500; Depreciation expense $1,500; Interest expense $250; other expenses $41,880. If the company budgets 40% for income tax expense, the amount of budgeted income tax expense will be $_____.

Which of the following items would be included on the capital expenditure budget? (Check all that apply.)

The process of planning future business actions and expressing them as formal plans is called _____.

A budget that includes the office manager’s salary and other administrative expenses is called the:

Direct materials are $15 per unit; direct labor is $7 per unit and variable overhead costs are $2 per unit. If total product costs are $27, what are fixed costs per unit?

The budgeted financial statements include the:

Characteristics of budgets include: (Check all that apply.)

A company has the following loan activity—Additional loan from bank: $19,000; Ending cash balance: $5,600. The preliminary cash balance is:

List the individual budgets of the master budget in the order in which they are prepared, with the first on top.

A company pays all selling expenses in the month incurred. Budget information includes: Administrative salaries: $50,000; Sales commissions: $20,000; Advertising: $10,000; Depreciation on store equipment: $25,000; Rent on administrative building: $30,000; Miscellaneous administrative expenses: $5,000. Total cash disbursements for general and administrative expenses is $_____________.

A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X sells for $10 each, the total sales for the first quarter of the year will be $ .

A company has the following budgeted information: Cash receipts: $542,000; Beginning cash balance: $10,000; Cash payments (including interest payments): $560,000; Outstanding loan balance: $100,000; Desired ending cash balance: $50,000. In order to maintain the desired cash balance, the company will need to:

A company’s sales budget indicates the following sales: January: 25,000; February: 30,000; March: 35,000. Beginning inventory is 12,000 and the company’s ratio of inventory to future sales is estimated at 45%. Units to be produced in January will be .

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