18 Questions
What is the primary responsibility of the chief executive of a firm regarding budget administration?
Administering the budget
What type of budget is used for significant investments in projects with long-term implications?
Capital budget
Who is responsible for justifying changes made to the previous budget?
Managers
What is the purpose of an operating budget?
To project revenues, expenses, and results of operations
Who may the chief executive delegate the budget responsibility to?
Any of the above
What is a financial budget related to?
Budget of financial resources reflected in the budgeted balance sheet
What is the book value of Property, Plant and Equipment (PPE) as of December 31?
2,800,000.00
What is the total amount of unpaid accounts payable as of December 31?
349,602.0
What is the net income for the period ending June 30?
307,650.00
What is the main purpose of a budget?
To control and plan financial activities
Who is responsible for preparing and administering budgets?
Managers
What is the master budget?
A summary of all budgets
What is the primary function of a budgeting schedule?
To answer who, what, and when questions
What is the purpose of a responsibility accounting system?
To identify cost drivers and activity centers
What is the main benefit of financial modeling?
It allows for the evaluation of alternative scenarios
What is the primary goal of participatory budgeting?
To involve every manager in planning and control
What is a potential conflict that may arise in a budget system?
Between planning and control
What is the purpose of tying performance to compensation?
To motivate managers to achieve their unit's budget goals
This quiz assesses knowledge on budgeting concepts, including operating and financial budgets, and their role in financial management.
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