Question

true/false

1.A schedule of cash receipts is often prepared in conjunction with the sales budget.

2. Depreciation expense will appear on the schedule of cash payments for selling and administrative expenses.

3. Under continuous budgeting, a new month is added to the end of the budget period each time the present month expires so that a twelve-month budget is available at all times.

4. One advantage of participatory budgeting is that it allows subordinates to perform the budgeting function thus freeing up upper management for more important tasks.

Answer 1

Solution:

1. True, A schedule of cash receipts is often prepared in conjunction with the sales budget.

2. False, Depreciation expense will appear on the schedule of cash payments for selling and administrative expenses.

3. True, Under continuous budgeting, a new month is added to the end of the budget period each time the present month expires so that a twelve-month budget is available at all times.

4. True, One advantage of participatory budgeting is that it allows subordinates to perform the budgeting function thus freeing up upper management for more important tasks.