Quiz - Budget Planning

Question 1

1. 
   

   A sales budget would include

   Answer
   

   		predicted sales prices and predicted unit sales.
   		predicted sales prices only.
   		predicted unit sales only.
   		predicted inventory costs.
   		a sales budget would include none of the above.

Question 2

1. 
   

   The Fulson Corporation had the following sales forecast available: July 300,000 units, August 320,000 units and September 280,000 units. The July 1st inventory is 80,000 units; if the company’s management wants ending inventory each month equal to 10% of the next month’s sales, how many units should be purchased for August?

   Answer
   

Question 3

1. 
   

   When preparing a company’s cash budget, all of the following are estimates except?

   Answer
   

   		Sales
   		Cash collections
   		Beginning cash balance
   		Production (or purchase) costs

Question 4

1. 
   

   An individual’s personal financial equity is referred to as

   Answer
   

   		Owner’s equity
   		Capital
   		Net worth
   		Wealth

Question 5

1. 
   

   How many units did your company (i.e. class section) sell during the most recent day of operations at your lemonade stand?

   Answer