Of the four costs shown below, which would not be included in the cash budget of an insurance firm?
Of the four costs shown below, which would not be included in the cash budget of an insurance firm? Question 13. A payday advance in California budget that gives a summary’ of all the functional budgets and projected Profit and Loss Account is known as …. (A) Capital budget (B) Flexible budget (C) Master budget (D) Discretionary budget Answer: (C) Master budget Question 14. The fixed-variable cost classification has a special significance in the preparation of (A) Flexible budget (B) Master budget (C) Cash budget (D) Capital budget Answer: (A) Flexible budget Question 15. The basic difference between a fixed budget and a flexible budget is that a fixed budget (A) Includes only fixed costs, and a flexible budget only variable costs (B) Is a budget for a single level of some measures of activity, while a flexible budget consists of several budgets based on different activity levels (C) Is concerned with future acquisition of fixed assets, while a flexible budget is concerned with expenses that vary with sales (D) Cannot be changed after a fiscal period begins, while a flexible budget can be changed after a fiscal period begins Answer: (B) Is a budget for a single level of some measures of activity, while a flexible budget consists of several budgets based on different activity levels Question 16. When preparing a production budget, the quantity to be produced equals: (A) Sales Quantity + Opening Stock + Closing Stock (B) Sales Quantity – Opening Stock + Closing Stock (C) Sales Quantity – Opening Stock – Closing Stock (D) Sales Quantity + Opening Stock – Closing Stock Answer: (B) Sales Quantity – Opening Stock + Closing Stock
