Which of the following is a resource constraint? a) Machine hours available b) Sales commissions c) Cost per unit d) Budgeted overhead 2. Development of a budget ____________. a) Is required by GAAP. b) Is required by tax authorities. c) Enhances communication and coordination among managers. d) Enhances borrowing limit of the firm. 3. Which of the following statements relating to budgeting is NOT true? a) A budget is a formal document that quantifies a company's plans for achieving its goals. b) Budgets are useful in the control process because they provide a basis for evaluating performance. c) A bottom-up approach to budgeting involves substantial input from lower-level managers. d) Most managers believe that budgeting is more successful when a top-down approach rather than a bottom-up approach is used.
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6. Which of the following statements are true? 1 Cash flow forecasting is primarily the responsibility of Financial Reporting 2 Whether to undertake a particular new project is a Financial Management decision A Both statements are true B Both statements are false C Statement 1 is true and statement 2 is false D Statement 2 is true and statement 1 is false 7. The following statements relate to various functions within a business. 1 The financial management function makes decisions relating to finance 2 Management accounts incorporate non-monetary measures Are the statements true or false? A Statement 1 is true and statement 2 is false B Both statements are true C Statement 1 is false and statement 2 is true D Both statements are false III. Financial Objectives 8. In relation to the financial management of a company, which of the following provides the best definition of a firm's primary financial objective? A To achieve long-term growth in earnings B To maximize the level of annual dividends C To maximize the wealth of its ordinary shareholders D To maximize the level of annual profits
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