ACC 560 Week 7 Quiz – Strayer NEW

 

Week 7 Quiz 6: Chapters 9 and 10

 

Chapter 9

TRUE-FALSE STATEMENTS

    1.     Budgets are statements of management's plans stated in financial terms.

 

Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    2.     A benefit of budgeting is that it provides definite objectives for evaluating performance.

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    3.     A budget can be a means of communicating a company's objectives to external parties.

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    4.     A budget can be used as a basis for evaluating performance.

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    5.     A well-developed budget can operate and enforce itself.

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    6.     The budget itself and the administration of the budget are the responsibility of the accounting department.

 

Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    7.     Effective budgeting requires clearly defined lines of authority and responsibility.

 

Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Business Economics

 

    8.     The flow of input data for budgeting should be from the highest levels of responsibility to the lowest.

 

Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation

 

    9.     Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Risk Management, AICPA PC: Interaction, IMA: Performance Measurement

 

  10.     A budget can facilitate the coordination of activities among the segments of a large company.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  11.     The longer the budget period, the more reliable the estimates of future outcomes.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  12.     The budget committee has the responsibility for coordinating the preparation of the budget.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Budget Preparation

 

  13.     The budget is developed within the framework of a sales forecast.

 

Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  14.     Budgeting and long-range planning are two terms that describe the same process.

 

Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  15.     Long-range plans are used more as a review of progress toward long-term goals rather than an evaluation of specific results to be achieved.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  16.     The master budget reflects management's long-term plans encompassing five years or more.

 

Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  17.     The master budget consists of operating and financial budgets.

 

Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  18.     Financial budgets must be completed before the operating budgets can be prepared.

 

Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  19.     The direct materials budget must be completed before the production budget because the quantity of materials available for production must be known.

 

Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  20.     The number of direct labor hours needed for production is obtained from the production budget.

 

Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  21.     A manufacturing overhead budget is not needed if the company develops a predeter-mined overhead rate to apply overhead.

 

Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  22.     The manufacturing overhead budget generally has separate sections for variable, mixed, and fixed costs.

 

Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  23.     A production budget should be prepared before the sales budget.

 

Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  24.     The direct materials budget contains both quantity and cost data.

 

Ans: LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  25.     The budgeted income statement indicates the expected profitability of operations for the next year.

 

Ans: LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

 

  26.     If a monthly cash budget is prepared properly, there will never be a cash deficiency at the end of any month.

 

Ans: LO: 5, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  27.     The budgeted balance sheet is prepared entirely from the budgets for the current year.

 

Ans: LO: 5, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  28.     The starting point when budgeting for a not-for-profit organization is generally to budget expenditures first.

 

Ans: LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  29.     A merchandiser has a merchandise purchases budget rather than a production budget.

 

Ans: LO: 6, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  30.     A critical factor in budgeting for a service firm is to determine the amount of products to purchase.

 

Ans: LO: 6, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  31.     The budget itself and the administration of the budget are entirely accounting responsibilities.

 

Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  32.     Financial planning models and statistical and mathematical techniques may be used in forecasting sales.

 

Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  33.     The direct materials budget is derived from the direct materials units required for production plus desired ending direct materials units less beginning direct materials units.

 

Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  34.     The manufacturing overhead budget shows the expected manufacturing overhead costs.

 

Ans: LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  35.     In order to develop a budgeted balance sheet, the previous year's balance sheet is needed.

 

Ans: LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  36.     In service enterprises, the critical factor in budgeting is coordinating materials and equipment with anticipated services.

 

Ans: LO: 6, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 


 

MULTIPLE CHOICE QUESTIONS

  37.     Why are budgets useful in the planning process?

a.   They provide management with information about the company's past performance.

b.   They help communicate goals and provide a basis for evaluation.

c.   They guarantee the company will be profitable if it meets its objectives.

d.   They enable the budget committee to earn their paycheck.

 

Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  38.     A budget

a.   is a substitute for management.

b.   is an aid to management.

c.   can operate or enforce itself.

d.   is the responsibility of the accounting department.

 

Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  39.     Accounting generally has the responsibility for

a.   setting company goals.

b.   expressing the budget in financial terms.

c.   enforcing the budget.

d.   administration of the budget.

 

Ans: LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Business Economics

 

  40.     Which one of the following is not a benefit of budgeting?

a.   It facilitates the coordination of activities.

b.   It provides definite objectives for evaluating performance.

c.   It provides assurance that the company will achieve its objectives.

d.   It requires all levels of management to plan ahead on a recurring basis.

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  41.     Budgeting is usually most closely associated with which management function?

a.   Planning

b.   Directing

c.   Motivating

d.   Controlling

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

 

  42.     Which of the following items does not follow from the adoption of a budget?

a.   Promote efficiency

b.   Deterrent to waste

c.   Basis for performance evaluation

d.   Guarantee of accomplishing the profit objective

 

Ans: LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  43.     Which is true of budgets?

a.   They are voted on and approved by stockholders.

b.   They are used in the planning, but not in the control, process.

c.   There is a standard form and structure for budgets.

d.   They are used in performance evaluation.

 

Ans: LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  44.     A common starting point in the budgeting process is

a.   expected future net income.

b.   past performance.

c.   to motivate the sales force.

d.   a clean slate, with no expectations.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Budget Preparation

 

  45.     If budgets are to be effective, all of the following must be present except

a.   acceptance at all levels of management.

b.   research and analysis in setting realistic goals.

c.   stockholders' approval of the budget.

d.   sound organizational structure.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Budget Preparation

 

  46.     If budgets are to be effective, there must be

a.   a history of successful operations.

b.   independent verification of budget goals.

c.   an organizational structure with clearly defined lines of authority and responsibility.

d.   excess plant capacity.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Budget Preparation

 

  47.     It is important that budgets be accepted by

a.   division managers.

b.   department heads.

c.   supervisors.

d.   All of these.

 

Ans: LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Budget Preparation

 

 

  48.     Which of the following statements about budget acceptance in an organization is true?

a.   The most widely accepted budget by the organization is the one prepared by top management.

b.   The most widely accepted budget by the organization is the one prepared by the department heads.

c.   Budgets are hardly ever accepted by anyone except top management.

d.   Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process.

 

Continued.............

All Possible Questions With Answers

  • Item #: ACC560W7Q

ACC 560 Week 7 Quiz – Strayer NEW

Price: $8.00
* Marked fields are required.
Qty: *
Reviews (0) Write a Review
No Reviews. Write a Review