Accounting 9706 · AS & A Level · Budgeting and budgetary control

Budgeting and budgetary control — practice question

Use Source B1 in the insert.
(a)[4]

Prepare the labour wages budget for the months June, July and August.

(b)[13]

Prepare cash budget extracts that show the entries for sales and labour in each of June, July and August.

(c)[2]

State two benefits to a business of preparing a cash budget.

(d)[4]

Advise the directors on whether they should adopt this suggestion or not. Justify your answer.

(e)[2]

Name two budgets that would be affected by the creation of a provision for doubtful debts.

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