bookkeeping test questions and answers pdf

Front-line managers’ budget forecasts are often more detailed and accurate than estimates prepared by top managers with less comprehensive knowledge of markets and day-to-day operations.Individuals at all levels of the company are regarded as members of the team whose opinions and decisions are respected by top management.Question-09: What are the benefits of self-imposed budgeting?Īnswer: There are a variety of benefits to self-imposed budgets: Higher-level administrators then review these budgets, and any conflicts are addressed by mutual consensus. Question-08: What is a self-imposed budget or participatory budget?Īnswer: A self-imposed budget is a form of budget preparation in which executives plan their budgets. Question-07: What is the continuous budget?Īnswer: A 12-month budget is a continuous budget that rolls forward one month after the end of the current month. Question-06: What is responsibility accounting?Īnswer: Responsibility accounting is an accountability system in which managers are held accountable for those sales and expense items and only those items they can exercise considerable influence. Budgets identify targets and priorities that can act as indicators for subsequent performance assessment.Before they arise, the budgeting phase will reveal possible bottlenecks.Budgets push executives to think about the future and prepare for it.Budgets express the strategies of the management around the enterprise.Question-05: What are the advantages of budgeting?Īnswer: Some advantages of budgeting are as follows:

Question-02: What are the purposes of the budget?Īnswer: Budgets are used for two different purposes:Īnswer: Planning is the setting of goals and the preparation of budgets for achieving those goals.Īnswer: Control is collecting feedback to ensure that a plan is implemented correctly or changed as situations change. Questions and Answers- BudgetingĪnswer: A budget is a comprehensive plan that is generally articulated in structured quantitative terms. Today we will learn the top “30” questions and answers-budgeting.” In management accounting, budgeting has significant importance.

Bookkeeping test questions and answers pdf