Midterm Exam

Question 1

A financial plan of the resources needed to carry out tasks and meet financial goals

Answer 1

Budget

Question 2

A quantitative expression of the goals the organization wishes to achieve in the cost of attaining these goals

Answer 2

Budget

Question 3

The act of preparing a budget

Answer 3

Budgeting

Question 4

Is a use of budgets to control a firm’s activities

Answer 4

Budgetary control

Question 5

Indicates the sales level, production and cost levels, income, and cash flow‘s that are anticipated for the coming year

Answer 5

Overall or master budget
Also known as planning budget or budget plan

Question 6

A summary of all phases of a company’s plans and goals for the future

Answer 6

Master budget

Question 7

Uses of the process of budgeting

Answer 7

Communication
Motivation
Standards
Planning
Organizing and directing
Controlling and performance evaluation

Question 8

The most important process of management

Answer 8

Communication

Question 9

This process moves people to act in accordance with organizational goals

Answer 9

Motivation

Question 10

Measures of performance

Answer 10

Standards

Question 11

An important basis for planning and controlling. They are set to motivate.

Answer 11

Standards

Question 12

An act of approximating the future and preparing resources

Answer 12

Planning

Question 13

Policies, systems, operational strategies, methods and means are devised as activities are mapped out and lined up to execute plans

Answer 13

Organizing and directing

Question 14

Classification of controls

Answer 14

Feedback controls
Concurrent controls
Feedforward controls

Question 15

Pertain to completed activities

Answer 15

Feedback controls

Question 16

Refer to ongoing processes

Answer 16

Concurrent controls

Question 17

Anticipate and prevent problems

Answer 17

Feedforward controls

Question 18

The executives should primarily subscribed organizational objectives. True or false?

Answer 18

True

Question 19

Exercise competence in leading in managing his top executives

Answer 19

CEO

Question 20

Capable and competent, and have ownership of organizational goals

Answer 20

Top executives

Question 21

Composed of top executives in the administrative, operational and financial areas of business, such as the vice president for sales, production, purchasing, human resources, information, technology, engineering and quality, administration, and most especially, finance

Answer 21

Budget committee

Question 22

Also known in practice as the management committee or executive committee

Answer 22

Budget committee

Question 23

Normally, headed by a budget, Director, administers the budgetary process

Answer 23

Budget committee

Question 24

The schedule of activities for the development and production of the budget

Answer 24

Budget planning calendar

Question 25

Includes distribution instructions for all budget schedules to show that a segments budget is an input to another department or business unit in the preparation of their own budget

Answer 25

Budget manual

Question 26

Integrates the entire budgetary activities

Answer 26

Planning calendar

Question 27

Types of budgets or the major composition of the master budget

Answer 27

operating budget financial budget capital budget

Question 28

Refers to projection of revenue, expenses, and results of operations for a definite period of time

Answer 28

Budgeted income statement

Question 29

A period-by-period Statement of cash at the start of a budget period, expected cash receipts classified by source and the resulting cash balance at the end of the budget period

Answer 29

Cash budget

Question 30

Refers to the budget of the financial resources as reflected in the budget statement of financial position and cash budget

Answer 30

Financial budget

Question 31

Projection of cost at a particular, or one level of production for a definite time period

Answer 31

Fixed budget

Question 32

Projection of cost at different levels of production for a definite period of time

Answer 32

Flexible or variable budget

Question 33

Budget prepared, using employees at all levels in the organization

Answer 33

Participative budget

Question 34

Budget that is expressed in units of materials, number of employees, or number of men hours, or service units rather than in pesos

Answer 34

Physical budget

Question 35

Another term for master budget

Answer 35

Planning budget or static budget

Question 36

Production plan of resources, needed to meet current sales demand and ensure adequate nventory levels

Answer 36

Production budget

Question 37

Budget for the major programs or projects that the company plans to undertake

Answer 37

Program budget

Question 38

Refers to the plans for the conduct of business for the planning period; it includes the budgeted income statement and all its supporting budgets

Answer 38

Operating budget

Question 39

Budget for a responsibility center

Answer 39

Responsibility budget