Question

1. What type of information is used when performing a regression analysis?

a. Interest Rates b. Return on Investment c. Projected sales or revenues d. Production schedules

2. What is the first step taken to develop a pro forma cash flow statement?

a. Determining the amount of cash the organization has on hand b. Identifying potential sources of working capital c. Listing sources of cash income d. Computing profitability ratio

3. Which of the following is NOT considered part of the production budget

a. Distribution costs b. Manufacturing costs c. Supervisor salaries d. Inventory levels

4. How does a budget containing inaccurate data impact an organization's future performance?

a. The organization is unable to properly plan and set attainable goals b. The organization can make adjustments the following year c. The organization is unable to obtain financing and capital needs d. The organization can forecast the effect of economic changes

Answer 1

1) Answer : a. Interest Rates

=> Regression analysis includes the relationship between two or more interest variables.

2) Answer : a. Determining the amount of cash the organization has on hand

=> The cash flow starts with the opening cash or closing balance of the cash account of the organization.

3) Answer : a. Distribution costs

=> The distribution costs is considered in Sales and distribution budget.

4) Answer : a. The organization is unable to properly plan and set attainable goals

=> The organisation’s future performance is achievable only if goals and plan is planned properly.