Questions from Survey Accounting

Q: The primary reason for preparing a cash budget is to determine the

The primary reason for preparing a cash budget is to determine the amount of cash to include on the budgeted balance sheet. Do you agree or disagree with this statement? Explain.

Q: What information does the pro forma income statement provide? How does

What information does the pro forma income statement provide? How does its preparation depend on the operating budgets?

Q: Why does preparing the master budget require a committee?

Why does preparing the master budget require a committee?

Q: What are the three levels of planning? Explain each briefly.

What are the three levels of planning? Explain each briefly.

Q: What are the advantages of budgeting?

What are the advantages of budgeting?

Q: Gaines Company recently initiated a post audit program. To motivate employees

Gaines Company recently initiated a post audit program. To motivate employees to take the program seriously, Gaines established a bonus program. Managers receive a bonus equal to 10 percent of the amo...

Q: Ken Shilov, manager of the marketing department, tells you that

Ken Shilov, manager of the marketing department, tells you that “budgeting simply does not work.” He says that he made budgets for his employees and when he reprimanded them for failing to accomplish...

Q: With respect to fixed costs, what are the consequences of the

With respect to fixed costs, what are the consequences of the actual volume of activity exceeding the planned volume?

Q: How are flexible budget variances determined? What causes these variances?

How are flexible budget variances determined? What causes these variances?

Q: Minnie Divers, the manager of the marketing department for one of

Minnie Divers, the manager of the marketing department for one of the industry’s leading retail businesses, has been notified by the accounting department that her department experienced an unfavorabl...