Question

depreciation expense of $4,000 was a net loss of $13,000 for he year ended December 31. During the year by $8,000, accounts year net cash of $8,000 b.provided net cash of $2.000 c. used net cash of $8,000 d. used net cash of $2,000 payable increased by $10,000, and During the year, operating activities 27. Which of the following budgets Pro Forma Balance Sheet are prepated before the sales budget? b, Yes No No Yes No Yes No 28. Static and nexible budgets are sigmilr thny lvelsmis f te ided a. they both are prepared for mleaces at the beginning the are prepared for multiple activity levels re based on the same per unit w based on the samne D. they both display only spending variances at the beginning the same c. they both a c. All of the above. e. None of the above. variable costs and the same fixed costs but show a different number units sold or produced. quantity variance may be an indication that the cost of direct materials paid supplier was too high and a high quality of materials was utilized a. True b. False 30. Once the budget performance report is created, it is imperative that management analyzes actual results and budgeted results, receives explanations for all variances, and takes corrective a. True b. False 31. Budgeting is a requirement for publicly traded companies, and master budget information must be inc published annual report a. True b. False Page 7 of 9

do all

Answer 1

ans 26
Cash flows from operating activities
Net loss		-13000
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expenses	4000
Decrease in Accounts receivable	5000
Increase in Mercabdise Inventory	-8000
Increase in Accounts Payable	10000
		11000
Net cash usedfrom operating activities		-2000
Option d used net cash by $2000
Increased or decreased of accounts receivale image is cut down I think it is
decreased
ans 27 Option D No, No
A master budget is prepared before sales budget
ans 28
Option C bothe are based on same per unit variable cost and same fixed cost
but showa a different numbers of unit sold and produced
The variable cost per unit is same amd also the fixed cost only the difference is
the activity level is planned in static budget and actual for flexible bdget
ans 29 False
An unfavorable variance tells that the quantity of material used is more than what was allowed
ans 30 False
Only varaince which are large in nature should be investigated
If any doubt please comment