Other questions in this quiz

2. Advice regarding expected cash flows:

  • Increase overdraft facility; spread costs of van; increase sales margin; source cheaper supply
  • Decrease overdraft facility

3. Bottom up / participative budgeting approach to managing budgets:

  • is a lie
  • involves the participation of the work force who then submits the budgets to their superiors
  • involves senior management laying down the budget with little or no employee involvement

4. MASTER BUDGET includes:

  • Forecast Income Statement; Forecast SOFP; Cash flow forecast
  • Forecast Income Statement;Cash flow forecast
  • Cash flow forecast

5. Accounting Rate of Return (ARR) =

  • Average annual profit = total profit over life of investment/ number of years of investment
  • Av. annual operating profit / av. investment to earn that profit x100
  • Average annual investment = cost of initial investment + disposal value /2

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