QUIZ –Week 4

I-Directions: Complete the table below.

Habakkuk Company
Sales Budget
For the Year Ending December 31, 2020
SALES BUDGET QUARTER
Formula Quarter 1 Quarter 2 Quarter 3 Quarter 4
Forcasted Unit Sales 5,500.00 6,000.00 7,000.00 8,000.00
x price Per unit 10 10 12 12
Total Gross Sales _______________ ________________ ________________ ________________
_

II. Multiple Choice

Directions: Choose the letter corresponding to the correct answer for each of the questions provided below.
1. Why are budgets useful in the planning activity of an organization?
a. Budgets help communicate goals and provide a basis for evaluation.
b. Budgets provide management with information about the company’s past performance.
c. Budgets enable the budget committee to earn paycheck.
d. Budgets guarantee the company to be profitable if it meets the objectives.
2. Which of the following is not a motive for budgeting according to Bible’s teaching?
a. Buy the things I want b. Stay out of debt c. Buy the things I need d. Have enough to give
3. What is the formula for computing production budget?
a. Expected Sales in Units + Planned Ending Inventory Units –Beginning Inventory in Units
b. Expected Sales in Units + Beginning Inventory in Units + Planned Ending Inventory Units
c. Planned Ending Inventory Units + Beginning Inventory in Units – Expected Sales in Units
d. None of the above
4. A _________________ is a type of financial intermediary that pools Savings of individuals and makes them
available to business and government users. Funds are obtained through the sale of shares.
a. mutual fund b. savings and loans c. savings bank d. credit union
5. Most businesses raise money by selling their securities in _____________
a. a direct placement. b. a stock exchange. c. a public offering. d. a private placement.
6. Which of the following is not a service provided by financial institutions?
a. buying the businesses of customers
b. investing customers’ savings in stocks and bonds
c. paying savers’ interest on deposited funds
d. lending money to customers
7. Government usually_______________________.
a. borrows funds directly from financial institutions.
b. maintains permanent deposits with financial institutions.
c. is a net supplier of funds.
d. is a net demander of funds.