Questions from General Accounting

Q: What does a favourable variance indicate?

What does a favourable variance indicate?

Q: Differentiate between authoritarian and participative styles of budgeting.

Differentiate between authoritarian and participative styles of budgeting.

Q: Explain the benefits of preparing a cash budget for an entity.

Explain the benefits of preparing a cash budget for an entity.

Q: Discuss the benefits to an entity in preparing a budget for the

Discuss the benefits to an entity in preparing a budget for the coming financial year.

Q: Explain the difference between profit or loss, gross profit and EBIT

Explain the difference between profit or loss, gross profit and EBIT.

Q: Explain why it is important to link operational budgets to strategic plans

Explain why it is important to link operational budgets to strategic plans.

Q: Outline six ways to increase cash inflow during periods of cash shortages

Outline six ways to increase cash inflow during periods of cash shortages identified in a cash budget.

Q: Explain why the sales budget is often referred to as the ‘

Explain why the sales budget is often referred to as the ‘cornerstone’ of budgeting.

Q: State the different types of budgets that may be prepared to construct

State the different types of budgets that may be prepared to construct the master budget.

Q: For the budgets you identified in 9.8 above, discuss

For the budgets you identified in 9.8 above, discuss the type of information provided in each budget and who in the entity would provide such information.