1.As part of the initial investment a partner contributes equipment that had a cost of 50,000 and accumulated depreciation of 35,000. If the partners agree on a valuation of 30,000 for the equipment, what amount should be debited to the office equipment account?
a. 15,000
b. 20,000
c. 30,000
d. 50,000
2.Which of the following budgets allow for adj. in activity levels?
a. Static Budget
b. Continuous Budget
c. Zero-Based Budget
d. Flexible Budget
3.Pipe Co. has a beginning inventory of 10,000 units. Sales are expected to be 30,000 units. The required ending inventory is 8,000 units. How many units must be produced?
a. 28,000
b. 30,000
c. 32,000
d. 48,000
4.Preparation of a cash budget takes all but which of the following into consideration?
a. Depreciation expense
b. Cash received from customers
c. Inventory payments
d. Payments to supplies
5.Calculating fixed unit manufacturing costs results in
a. Constant unit costs as production increases
b. Constant unit costs as production decreases
c. Increasing unit cost as production increases
d. Increasing unit cost as production decreases
6.Which of the following is not a benefit of budgeting?
a. Budgeting communicates expected outcomes
b. Budget assists in creating specific goals and objectives
c. Budget establishes benchmarks to measure success
d. Budget guarantees a net income for the company
7.Determine the expected annual sales for the sales budget. Units sell at 8.00 each. Estimated sales are as follows; First quarter 10,000 units, second quarter 15,000 units, third quarter 20,000 units and fourth quarter 30,000 units
a. 6000,000
b. 240,000
c. 800,000
d. 750,000