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
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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
A company wants to buy a machine that will have a useful life of 10 years. The company wishes to spread payments for the machine over its useful life. What is the MOST SUITABLE way to finance this purchase?
A. Bank account overdraft
B. Issue shares in the company
C. Purchase on company credit card
D. Loan from the bank
Which of these answers shows the correct order of processes to follow to forecast sales revenue?(i) Average seasonal variation (ii) Actual = Trend + Seasonal variation (iii) Trend using three-point average(iv) Seasonal variation for each quarter
A. (i) (iv) (ii) (iii)
B. (iii) (i) (iv) (ii)
C. (iii) (iv) (i) (ii)
D. (ii) (iii) (i) (iv)
Which of the following is NOT a characteristic of useful management information?
A. It should be timely
B. It should be user-targeted
C. It should be detailed
D. It should be complete