1. A formal written statement of management’s plans for a specified future time period, expressed in financial terms is a(n)

a. accounting plan.

b. budget.

c. research analysis.

d. sales budget.

2. Which of the following is NOT a benefit of budgeting?

a. It reveals the prevailing business conditions.

b. It results in greater management awareness of the entity’s overall operations.

c. It creates an early warning system of potential problems.

d. It provides definite objectives for evaluating performance at each level of responsibility.

3. All of the following are financial budgets except the

a. budgeted balance sheet.

b. budgeted income statement.

c. capital expenditure budget.

d. cash budget.

4.  The master budget includes all of the following except

a. Budgeted Income Statement.

b. Capital Expenditure Budget.

c. Cash Budget.

d. Indirect Labor Budget.

5. If required production units are 75,000, budgeted sales units are 65,000, required direct materials purchases units are 3,000, and beginning finished goods units are 5,000, then desired ending finished goods units would be

a. 2,000.

b. 5,000.

c. 12,000.

d. 15,000.