1- In the budgeting process, if an organization’s executives want input from lower-level managers about those managers’ expectations and needs for the coming year, then which approach would be best?

A- Top-down budgeting

B- Zero-based budgeting

C- Bottom-up budgeting

2- You are the owner of Patio to Go, a small business specializing in patio furniture. Last week, you found out that the owner of Arches & Arbors is looking for a buyer for his business.

Which of the following items would be included in Arches & Arbors’s liabilities? Check all that apply.

A- Garden arches in stock

B- Employee payroll obligations

C- Lumber purchased for building arbors

D- Mortgage on existing store property

3- In order for the deal to go through, you need to compare the owner’s current assets and (1)    by looking at his (2) . But because you also want to see the company’s (3)   , or profit and loss, for a one-year period, you also ask to see his (4) .

1- Profit margin OR liabilities OR inventory turnover OR profitability

2- owner's equity OR balance sheet OR activity ratio OR income statement

3- leverage OR net income OR capital budget OR inventory turnover

4- liquidity ratio OR owner's equity OR balance sheet OR income statement