BUSN 5200 Week 5 Quiz | Webster University
- Webster University / BUSN 5200
- 08 Jul 2021
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BUSN 5200 Week 5 Quiz | Webster University
Question 1
What functional role do management accountants play in the budgeting process?
They audit the financial statements
They set targets for other managers
They decide what bonuses should be paid to the staff
They facilitate and co-ordinate the budgeting process
Question 2
A common Wall Street rule of thumb is that the growth rate ought to be roughly equal to the:
price-to-book ratio
price-earnings ratio
price-to-cash-flow ratio
price-to-sales ratio
Question 3
What is discretionary income?
Commissions or bonuses paid by your employer, or tips received for services provided
The amount of money you have remaining to put in a savings account at the end of the month
The money used to make your rent or mortgage payment, or other such expenses.
It is the income that remains after taxes and fixed expenses are paid
Question 4
The master budget will comprise:
The cash budget, the budgeted profit and loss account and the budgeted balance sheet
The cash budget
All the production, selling and cost budgets for the organization
The budgeted profit and loss account and the budgeted balance sheet
Question 5
Which of the following steps in the preparation of a master budget would logically be performed first?
Prepare a budgeted balance sheet.
Prepare a sales forecast.
Prepare production schedules.
Prepare a cash budget
Question 6
Which of the following regarding retained earnings is false?
Retained earnings is increased by net income
Retained earnings is a component of stockholders' equity on the balance sheet
Retained earnings is an asset on the balance sheet
Retained earnings represents earning not distributed to stockholders in the form of dividends
Question 7
Which is the most correct answer that defines Opportunity Cost?
The cost of already using an asset or a person already employed who was put on a new project.
The cost of already using an asset by the firm
The cost of already using a person on a new project.
The cost of doing business of the firm
Question 8
A company has sales of 2,600 units. There are 1,400 units of opening stock while the closing stock is planned to be 1,800 units. What production is needed to satisfy sales?
2,200 units
2,600 units
2,437 units
3,000 units
Question 9
What causes variances in a budget at the end of a quarter?
When the budgeting number matches exactly
When the budgeted number is above or below the expected results
When the budgeted number is above the expected results
When there is an error in the budgeting process
Question 10
What functional role do management accountants play in the budgeting process?
They audit the financial statements
They set targets for other managers
They decide what bonuses should be paid to the staff
They facilitate and coordinate the budgeting process
Question 11
The master budget will comprise:
The cash budget, the budgeted profit and loss statement and the budgeted balance sheet
The cash budget
All the production, selling and cost budgets for the organization
The budgeted profit and loss statement and the budgeted balance sheet
Question 12
What can happen if a company grows to fast?
It means they just need to borrow more
It means they need to sell more stock
They can run out of cash to support their growth
Cash is never an issue for any company
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