04. Cash Budgeting
Student: ___________________________________________________________________________
1.
The beginning cash balance is not included on the cash budget because the cash budget deals
exclusively with cash flows rather than with balance sheet amounts.
True False
2.
An organization's budget program should not be used:
A.
to motivate employees.
B.
to assign blame to managers that do not meet budgetary goals.
C.
to help evaluate managers.
D.
to allocate resources to the various parts of an organization.
3.
Which of the following statements about budgeting is
not
true?
A.
Budgeting is an aid to planning and control.
B.
Budgets create standards for performance evaluation.
C.
Budgets help coordinate the activities of the entire organization.
D.
Budgeting forces managers to think ahead and formalize long-range objectives.
E.
Budgeting eliminates the need for day-to-day monitoring of operations.
