TRUE/FALSE MI2

1. Is the following statement true or false?

"Coordination and allocation of responsibility for the preparation of budgets is one of the functions of the budgets committee"

• a.True

• b.False

2. Is the following statement true or false?

"A budget covers periods longer than one year and is used for strategic planning"

• a.True

• b.False

3. Is the following statement true or false?

"A budget manual will contain instructions governing the preparation of budgets"

• true

• false

4. Cash budget is a functional budget. Is it true or false

• true

• false

5. Is the following statement true or false?

"A principal budget factor is a factor which limits an organization's performance" (activities)

• true

• false

6. Distribution and selling resources NOT be a principal budget factor. Is it true or false?

• true

• false

7. Is the following statement true or false?

 

"When preparing the master budget, establishing the organization's long-term objectives would normally be carried out first

• true

• false

3. Is the following statement true or false

 

The master budget includes the (Budget manual is instructions for the completion of the budget forms and responsibilities of the personal involved)" budget income statement, budget balance sheet and cash budget

• true

• false

9. Is the following statement true or false?

 

The master budget details the timetable for the preparation of the various budgets

 

• True

• false

10. Is the following statement true or false?

 

"Positive correlation means that low values of one variable are associated with high values of the other, and high values of one variable are associated with low values of the other"

• true

• false