Question

Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below.

1. All of the following budgets are considered financial budgets except the __________ budget.

1. cash
2. capital expenditures
3. sales
4. None of these choices are correct.

2. A budget that estimates the expected receipts (inflows) and payments (outflows) of cash for a period of time is called a __________ budget.

1. sales
2. capital expenditures
3. cash
4. None of these choices are correct.

Answer 1

1. All of the following budgets are considered financial budgets except the __________ budget.

Answer: c. Sales

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• The financial budget provides information for the budgeted balance sheet.

The cash budget provides information for budgeted cash which is part of budgeted balance sheet.

The capital expenditures budget provides information for non-current assets (fixed assets) which are part part of budgeted balance sheet.

• The sales budget provide information for budgeted sales which is a part of the budgeted income statement.

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2. A budget that estimates the expected receipts (inflows) and payments (outflows) of cash for a period of time is called a __________ budget.

Answer: c. Cash