Which TWO of the following are objectives of cash budgeting?
Anticipate cash shortages and surpluses
B. Ensure that trade receivables are paying on time
C. Ensure that the cash available will allow the overall budget to be met
D. To decide what trade discounts should be offered
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Which TWO of the following tasks are undertaken when preparing a cash budget?
A. Converting sales into cash receipts
B. Calculating the depreciation charge
C. Estimating the cost of utilities
D. Valuing the inventory
From the budget, opening receivables at the start of June are $657,998. Of these, 4.75% will be written off as irrecoverable debts. Sales in the month are $745,909 and closing receivables are $457,889. What is the budgeted cash received?
A. $946,018
B. $1,372,652
C. $977,273
D. $914,763
A company has the following information to prepare a cash budget for April. Sales are increasing month on month by 5%. Sales are offered with one-month credit, and all customers pay within in the month after the sale takes place. January sales are $25,000.What figure would be entered as the budgeted cash receipts from sales for April?
A. $25,000
B. $26,250
C. $27,563
D. $28,940
Which of the following may be a reason for adverse variances when comparing budgeted with actual cash payments?
A. The cost of raw materials has increased
B. The sales price has increased
C. Sales volume has decreased
D. Productivity has decreased