Sierra, a managerial accountant for Pepsi, develops estimates of how much each department will spend in the upcoming year. What task of managerial accounting is she completing?

budgeting

Karen, a hedge fund manager, is considering investing in a new company. She is looking at the financial statement that gives her insight into what the company owes and owns. Which financial statement is it?

balance sheet

Which is a factor that might cause a business to adjust its budget figures?

economic trends

What is the relationship between a business’s goals and its budget?

Budgets translate a business’s goals into actual means for accomplishing them.

After a business designates categories of expense in its budget, it:

allocates a dollar amount.

To develop realistic budgets, existing businesses usually base their estimates on:

past performance.

The owners of C&G Auto regularly review their budget to determine whether they are:

following their financial plans.

How is a budget like a tree?

A budget is divided into categories and subcategories similar to branches.

The master budget for Aubrey's Day Care Center is made up of information from:

specialized budgets that are generated by individual departments.

What types of financial information are most useful to businesses?

timely and understandable

For financial information to be comparable, it must also be:

consistent

When a business decides to pay a loan off early due to a cash surplus, how is this business using financial information?

to manage debt

A company looks at financial information and learns that it could save money by switching to a different Internet provider. This is an example of using financial information to:

reduce expenses.

Which is a way that businesses can use financial information?

to identify trends

A manager is most likely to use financial information when:

deciding if resources are available to fund a new project