Section A: Financial Statements & Concepts Multiple Choice $(2$ marks$)$ Which of the following is not one of the main financial statements? a$)$ Balance Sheet b$)$ Income Statement c$)$ Budget Forecast d$)$ Cash Flow Statement Short Answer $(4$ marks$)$ What does the Balance Sheet show? Name its three main components and briefly explain each. Fill in the Blank $(2$ marks$)$ The rule of accounting is: Assets $=\_\_\_\_\_\_+\_\_\_\_\_\_.$ True or False with Explanation $(4$ marks$)$ The Cash Flow Statement shows the company$$s revenues and expenses over a period of time. If false, explain why. Short Answer $(4$ marks$)$ Why is it important for managers to understand the audit report? Provide two reasons. Short Answer $(4$ marks$)$ Explain the difference between accrual accounting and cash accounting in one or two sentences. Section B: Budgeting & Forecasting $30$ marks Multiple Choice $(2$ marks$)$ Which of the following best describes a budget? a$)$ A guess at future profits b$)$ A plan allocating resources to achieve goals c$)$ A list of all company assets d$)$ A summary of past expenditures Short Answer $(4$ marks$)$ State three benefits of budgeting for an organization.