Multiple Choice Questions:

1) The final step in the process of creating the master budget is the preparation of:

A) The operating budget

B) The budgeted balance sheet.

C) The budgeted cash flow statement.

D) The cash payments for expenses.

2) In the cash flow statement, all cash receipts and payments are categorized into: Operating activities, Financing activities and:

A) Investing activities.

B) Merchandising activities.

C) Budgeting activities.

D) Controlling activities.

3) Which of the following amounts of a flexible budget remain constant when the sales volume changes?

A) Total contribution margin

B) Total fixed costs

C) Total variable expenses

D) Total sales revenue

4) Which of the following amounts of a flexible budget change with changes in sales volume?

A) Selling price per unit

B) Total fixed costs

C) Variable expense per unit

D) Total contribution margin

Answer rating: 100% (QA)

1 C The budgeted cash ... View the full answer