II State True or False for the under listed sentences 1) Imposed budgeting is a top-down process and sometimes it is bottom-up process. 2) Vertical analysis does not involve taking several years of financial data comparing them to each other to determine growth rate. 3) Leverage ratios help us to measure the liquidity of the organization. 4) Budgeting control in the organization requires expenditure of time, money and effort.

III Choose the best answer for the following multiple-choice questions 1) One of the following methods is not one of the main methods of budgeting process: a) Direct materials purchase budget b) Incremental budgeting c) Zero-bas budgeting d) Activity-based budgeting

2) Budgeting control has limitations or disadvantages which include: a) It may bring about rigidity in the organization (non flexibility) b) It becomes useless when there is inflation or depression in the market c) Most of the people in the organization considers it as an end rather than a means d) All of the above

3) One of the following is not considered as profitability measure of an organizations performance a) Gross profit margin b) Operating income margin c) Quick ratio margin d) Net profit margin

4) Which one of the under mentioned activities is not part of the cash flow statement components a) Investing activities b) Leverage activities c) Turnover activities d) Operating activities e) b and c