Financial

Forecasting,
Planning, and
Budgeting

1
TRUE or FALSE
1. Financial budgeting is the process
of calculating how much money you
will earn during a particular period
of time, and planning how much
you will spend, save, and borrow.

2
TRUE or FALSE
2. A master budget is part of an overall
organization plan for the next year made up of
three components.

3
TRUE or FALSE
3. Cash receipts include cash sales, sales of
assets and borrowing.

4
TRUE or FALSE
4. Budgets can create serious ethical issues for
many people.

5
TRUE or FALSE
5. Operating expense is an expense a business
incurs through its normal business operations.

6
TRUE or FALSE
6. Production cost include direct
materials and direct labor only.

7
TRUE or FALSE
7. The cash budget is a statement of cash on hand at the
end of the budget period, expected cash receipts,
expected cash disbursements, and the resulting cash
balance at the beginning of the budget period.

8
TRUE or FALSE
8. A sales budget is a plan of
resources needed to meet current
sales demand and ensure that
inventory levels are sufficient for
future sales.

9
TRUE or FALSE
9. Production forecasting is the process of
estimating future revenue by predicting the amount
of product or services a sales unit (which can be an
individual salesperson, a sales team, or a company)
will sell in the next week, month, quarter, or year.

10
TRUE or FALSE
10. Financial forecasting is predicting a
company's financial past by examining
historical performance data, such as revenue,
cash flow, expenses, or sales.

11
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