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6. Under Net (At bottom of cash budget)

  • Cash balance B/f = Brought forward; Cash balance c/f = Closing figure
  • Nothing

7. Horizontal axis

  • Price
  • Months; total
  • Sub headings

8. 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

9. Two subheadings (Vertical axis)

  • Reciepts; Payments
  • Payments; Revenue
  • Profit: payments

10. Headings along top horizontal axis of a CASH BUDGET

  • Months
  • Titles of expenses
  • Company name

11. Advice regarding expected cash flows:

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

12. Approaches to generating and managing budgets:

  • Top up & Bottom down (Departmental expenditure)
  • Top down & Bottom up (Departmental budgeting)
  • Left down & Bottom up (Departmental budgeting)
  • Top up & Bottom down (Departmental budgeting)

13. Inventories budget includes (down vertical axis):

  • Bank over draft; Purchases : Inventories used: Closing balance
  • Opening balance; Purchases : Inventories used: Closing balance
  • Cash balance; Purchases : Inventories used: Closing balance

14. MASTER BUDGET includes:

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