Chapter 22 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Chapter 22 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Complete Chapter Questions With Answers

Sample Questions Are Posted Below

1. The task of preparing a budget should be the sole task of the most important department in an organization.
   1. True
   2. False

ANSWER:                                  False

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.22-01 – 22-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.36 – Budgeting and Responsibility

ACCT.IMA.06 – Budget Preparation BUSPROG: Analytic

2. A formal written statement of management’s plans for the future, expressed in financial terms, is called a budget.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.22-01 – 22-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.36 – Budgeting and Responsibility

ACCT.IMA.06 – Budget Preparation BUSPROG: Analytic

3. Budgets are normally used only by profit-making businesses.
   1. True
   2. False

ANSWER:                                  False

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.22-01 – 22-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.36 – Budgeting and Responsibility

ACCT.IMA.06 – Budget Preparation BUSPROG: Analytic

4. The objectives of budgeting are (1) establishing specific goals for future operations, (2) executing plans to achieve the goals, and (3) periodically comparing actual results with these goals.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.22-01 – 22-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.36 – Budgeting and Responsibility

ACCT.IMA.06 – Budget Preparation BUSPROG: Analytic

5. When budget goals are set too tight, the budget becomes less effective as a tool for planning and controlling
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.22-01 – 22-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.36 – Budgeting and Responsibility

ACCT.IMA.06 – Budget Preparation BUSPROG: Analytic