The first step in preparing the operating budget is the ________.

Select one:

a. sales budget

b. capital budget

c. cash budget

d. operating expense budget

Silent Company is preparing a cash budget for the month of June. The following information is available:

Cash Balance, May 31, 2019 $11,000

Cash collections from customers in June 43,000

Cash paid for merchandise in June 20,000

Cash paid for operating expenses in June 20,000

Paid cash dividend in June 5,000

The minimum cash balance desired is $5,000. What is the cash balance on June 30, 2019?

Select one:

a. $9,000

b. $10,000

c. $13,000

d. $8,000

Separable costs are part of a joint process and cannot be exclusively identified with individual products.

Select one:

a. TRUE

b. FALSE

The gain or loss on the disposal of equipment is determined by ________.

Select one:

a. adding the disposal value of the old equipment to the book value of the old equipment

b. subtracting the book value of the old equipment from the cash received from the old equipment

c. adding the book value of the old equipment to the cost of the new equipment

d. subtracting the book value of the old equipment from the cost of the new equipment

An operating budget is the major part of the master budget that focuses on the balance sheet and supporting schedules.

Select one:

a. TRUE

b. FALSE

The financial budget focuses on the effects that the ________ and other plans will have on ________.

Select one:

a. operating budget; cash balances

b. master budget; resources

c. long-range plan; activities

d. continuous budget; resources

Budgeted performance goals generally provide a better basis for evaluating actual performance than past performance.

Select one:

a. FALSE

b. TRUE

The most forward-looking and least detailed budget is the strategic plan.

Select one:

a. TRUE

b. FALSE