The first budget to be prepared when making a master budget is the
a. sales budget.
b. production budget.
c. cash budget.
d. direct labor budget.
A
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Answer the following statements true (T) or false (F)
1. In a bank reconciliation, a book error will be shown on the bank side of the reconciliation. 2. In a bank reconciliation, outstanding checks will be shown on the bank side of the reconciliation. 3. In a bank reconciliation, a deposit in transit will be shown on the bank side of the reconciliation. 4. The cash balance in a companys general ledger and the company's bank balance on the bank statement will always be the same. 5. On a bank reconciliation, deposits in transit are added on the bank side of the reconciliation.
Favre Company reports depreciation expense of $51,000 for Year 2. Also, equipment costing $173,000 was sold for a $11,100 loss in Year 2. The following selected information is available for Favre Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31Year 2Year 1Equipment$665,000? $838,000? Accumulated Depreciation-Equipment 472,000? 555,000?
A. $39,000. B. $51,000. C. $50,100. D. $27,900. E. $71,900.
Actions which the decision maker cannot change are called
a. Rigid actions b. Inflexible actions c. Nondiscretionary actions d. Discretionary actions
Firms like to hold large stocks of cash since the risk of becoming insolvent is minimized
Indicate whether the statement is true or false