Question

PROBLEMI efore The r A production budget budgetence sheet Crowali uchas buget sche A C 2. Which of the following to benefit of b eing c er poter ottenecks before they i ties of the organization in the n ative of the C esting records comply with account rovides for evaluating w esterformance D 31 The concept of responsibility accounting and that A budgetary date should be reviewed and approved by the bigger comme Budgetary data should be reviewed and approved by all level of management Can employee's performance should be evaluated only on these under An employee's performance should be evaluated only by sor har the com A 41 A flexible budget s budget r ests by activity and estimate the benefits arting from each present statement of expectations for a period of time but does not presentam commitment presents the plan for only one level of activity and does not just to changes in the belof activity presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels 15. A fexible budget is a budget that: A updated with actual costs as they occur during the period B. is updated to reflect the actual level of activity during the period Ci prepared using a computer spreadsheet application D. contains only variable production costs.

Answer 1

(1) budgeted balance sheet

EXPLANATION:

All the elements required for preparing budgeted balance sheet cannot be prepared without first preparing the cash budget therefore budgeted balance sheet also can’t be prepared before preparing cash budget.

(2) it ensures that accounting records comply with generally accepted accounting principles

EXPLANATION:

Budgeting has nothing to do with the accounting principles because it is a core of accounting whereas budgeted are originally based upon pre-existing accounting data.