Multiple Choice Questions:

1) While preparing the budgeted balance sheet of a merchandiser, the amount of merchandise inventory can be obtained from:

A) The merchandise inventory account.

B) The inventory, purchases and cost of goods sold budget.

C) The production budget

D) The capital expenditure budget and cash budget.

2) Gamma Corp. is preparing their budget for the 1sty quarter of 2015. The following data is provided:

The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be:

A) $9,500

B) $10,700

C) $8,750.

D) $9,800

3) While preparing the budgeted income statement of a merchandiser, the amount of cost of goods sold can be taken from:

A) The budgeted balance sheet.

B) The budgeted cash flow statement.

C) The inventory, purchases and COGS budget.

D) The payment for cost of goods sold.

4) Uncle's Caps, a merchandiser, want to prepare the budgeted balance sheet for the next budget period. For this purpose the amount of ending cash balance can be retrieved from:

A) The sales budget.

B) The budgeted funds flow statement.

C) The cash budget.

D) The Cost of Goods Sold budget.

5) The amount of accumulated depreciation for the budgeted balance sheet can be obtained from:

A) The selling and administrative expenses budget.

B) The selling and administrative expenses budget and the prior balance sheet.

C) The cash payments for S & An expenses budget.

D) The financial budget.

Transcribed Image Text:

Inventory, Purchases and COGS Budget Cost of goods sold (a) Desired ending inventory(b) Total inventory required less Beginning inventory Purchases Feb $28,500 Jan Mar $30,000 $22,500 10,700 9,500 9,800 40,700 38,000 32,300 -11,000 -10,700 -9,500 29,700 27,300 22,800 Inventory, Purchases and COGS Budget Cost of goods sold (a) Desired ending inventory(b) Total inventory required less Beginning inventory Purchases Feb $28,500 Jan Mar $30,000 $22,500 10,700 9,500 9,800 40,700 38,000 32,300 -11,000 -10,700 -9,500 29,700 27,300 22,800

Answer rating: 100% (QA)

1 B The inventory purchases and cost of g... View the full answer