Lesson 3 activity

Question 1

What is the type of planning that covers the formulation of the long-term plans of a company?

Answer 1

strategic planning

Question 2

the most important financial statement account in financial forecasting?

Answer 2

sales

Question 3

What is the budget that covers the replacement of equipment and expansion of production
capacity?

Answer 3

capital budget

Question 4

What is the type of budget that provides information regarding the number of units to be
produced over a given accounting period based on expected sales and targeted level of ending
inventories?

Answer 4

. Production budget

Question 5

what are the things that are included in the working capital account?

Answer 5

accounts receivables
cash
inventories

Question 6

What do you think will happen with the working capital requirements if the sales and volume
of operations increase?

Answer 6

Working capital requirements will increase

Question 7

Which of the following reports shows the expected cash receipts and disbursements over a
given accounting period to determine the extent of financing needed or the amount of excess
cash that will be available?

Answer 7

Cash budget

Question 8

What is the reason for holding cash that is related to the payment of salaries of employees
and other operating expenses like utilities and security?

Answer 8

Transaction balance

Question 9

9. What working capital financing policy says that the long-term sources of financing should
   finance permanent working capital requirements, while temporary working capital requirements
   should be financed by short-term sources of financing

Answer 9

Maturity-matching working capital financing policy

Question 10

Which of the following is/are considered benefit/s of aging of inventories?
A. To identify fast-moving inventories
B. To identify slow-moving inventories
C. To identify which are high-valued and low-valued inventories in terms of peso amount per unit
D. Both A and B

Answer 10

d