Accounting 9706 · AS & A Level · Budgeting and budgetary control
Budgeting and budgetary control — practice question
Study Source A in the insert.
(a)[2]
State two purposes of a cash budget.
(b)[12]
Draw up the cash budget for November, December and January.
(c)[4]
Draw up the budgeted statement of profit or loss for the three-month budgeted period ending 31 January. Begin with gross profit.
(d)[7]
Advise the directors which option, if any, they ought to select. Support your answer.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “To spot any cash deficit so that funding, i.e. a bank loan, can be arranged in advance” …