Practice Test

Q1) The budget control organization is usually headed by a top executive who is known as _____________ . Show Answer

Q2) In order to prepare a flexible budget, items of anticipated expenditure are classified into _____ Show Answer

Q3) _____________budget is a summery of all the functional budgets and the budgeted profit or loss. Show Answer

Q4) __________ budget is most suited for fixed expenses. Show Answer

Q5) __________ budget shows the anticipated sources and utilization of cash. Show Answer

Q6) The two main methods of preparing cash budget are __________ method and _______method. Show Answer

Q7) Zero-base budgeting was first used by ______ Show Answer

Q8) Master budget incorporates all _____ budgets. Show Answer

Q9) A factor which influences all other budgets, is called _____ factor. Show Answer

Q10) Budgetary control is a system of controlling __________ Show Answer

Q11) Budget that gives summery of all the functional budgets and projected profit and loss account is known as : Show Answer

Q12) Which of the following is usually a long term budget ? Show Answer

Q13) The fixed -variable cost classification has a special signification in the preparation of : Show Answer

Q14) The success of a flexible budget depends upon careful study and classification of expenses into : Show Answer

Q15) The budget that is set first and all the other budgets are subordinate to it is : Show Answer

Q16) Cash budget is prepared because it : Show Answer

Q17) While preparing cash budget, Cash discount allowed to customers is added to : Show Answer

Q18) While preparing cash budget, opening balance of cash is added to: Show Answer

Q19) Cash budget is based on : Show Answer

Q20) Budgeting may be said to be the act of _____ budgets. Show Answer

Q21) Budgeting system _____ key managerial functions. Show Answer

Q22) Zero-base budgeting overcomes the weaknesses of _______ Show Answer

Q23) Calendar Ratio = Show Answer

Q24) Capacity Ratio = ______ Show Answer

Q25) Efficiency Ratio = ______ Show Answer

Q26) Activity Ratio = Show Answer

Q27) A master budget is the ______ incorporating its component functional budgets. Show Answer

Q28) The sales Budget is the most important budget and forms the basis on which all the _______ built up. Show Answer

Q29) A system by which budgets are used as a means of planning and controlling all aspects of a business is called ________ Show Answer

Q30) _____________ is a budget designed to finish budgeted costs for any level of activity actually allowed. Show Answer

Q31) _________ is a summary of all functional budgets in a capsule from. Show Answer

Q32) Budgetary control helps management to plan and _______ Show Answer

Q33) ___________ determines the priorities of functional budgets. Show Answer

Q34) Budget is an expression of a business plan financial terms ______ shows the anticipated sources and utilization of cash. Show Answer

Q35) A document which sets out the responsibilities of the persons engaged in the routine of and the forms and records required for budgetary control is called _______ Show Answer

Q36) Cash budget is a______budget. Show Answer

Q37) __________ is a budget which states the additional workers to be engaged in the factory. Show Answer

Q38) A budget which consolidates the organization's overall plan is called ______ Show Answer

Q39) It is essential to determine the proper budget period and to have well defined _____ Show Answer

Q40) Sales budget is a Show Answer

Q41) In the case of plant, the limiting factor may be : Show Answer

Q42) The difference between fixed and variable cost has a special significance in the preparation of Show Answer

Q43) The budget that is prepared first of all is Show Answer

Q44) In case of materials, the key factor may be Show Answer

Q45) The budget which commonly takes the form of budgeted profit and loss account and balance sheet is Show Answer

Q46) The primary difference between a fix budget and a variable ( flexible) budget is that a fixed budget : Show Answer