3/31/25, 9:30
AM
WGU - D076 UNIT 5 - FINANCIAL FORECASTING AND
BUDGETING EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED GRADED A++
When evaluating a company's Variances show that certain managers or divisions are not meeting targets.
performance, what can variances
on a company's cash budget
indicate?
How far into the future do cash Between one month and one year
budgets usually forecast?
What are three principles of Keep records; develop savings, income, and expense strategies; and
budgeting that are important to use a method that meets your needs and objectives
know before
beginning the budgeting process?
What are the three main uses of cash Cash budgets are used to forecast future financial need, aid in
budgets? performance evaluation, and show when corrective action is needed.
What is the correct order of the Determine cash receipts, estimate cash disbursements, create the cash budget
three steps necessary to create a
cash budget?
Why is "put $50 in a savings account Because it is specific and measurable
each month for Christmas gifts" a
better
budgeting goal than "save money
for Christmas gifts"?
Why would a monthly mortgage Because the payment is the same amount each month
payment be considered a fixed
expense?
Which action would help you make Compare your budgeted cash flows to your actual cash flows, and
your budget more efficient? then revise the budget if necessary.
Which item is an example of a cash A graduation gift of $100 from your grandmother
receipt in a personal budget?
Which item represents an example A rent check paid and cashed for the warehouse the company uses
of a cash disbursement a business
might have this month?
What three things should be Cash receipts, cash disbursements, and borrowing
included in a cash budget for a
business?
Which items are considered cash Raw materials, rent, administrative expenses, interest, and selling expenses
disbursements for a business?
Why are sales not strictly Sales include both cash sales and credit sales.
considered to be the same thing
as cash receipts?
What is the main reason why it is Tracking your cash flows allows you to recognize where and how your
important to track and record cash money is spent so you can monitor your cash flows and revise your
flows? budget as needed.
In what situation might the When a person has a hard time remembering to record their cash flows
software method of tracking be and when they prefer to use a card to make purchases
preferable to the spreadsheet
method of tracking?
What is the purpose of monitoring Monitoring allows you to evaluate whether your actual cash flows
your cash flows? are in line with your goals and to understand when correction or
revision is needed.
Which processes help you identify Monitoring your budget allows you to identify problems, and then
and fix problems in your budget? gradual revision and implementation of new processes allow you to
fix those problems.
1/
5
, 3/31/25, 9:30
AM
W&H Company wants to create a Cash disbursement
cash budget to better manage its
cash flows.
The financial manager knows that
the firm's labor costs and materials
costs are too high for the level of
sales each month. The firm also
needs to keep better track of its
cash flows to assess its need for
additional financing through short-
term loans.
W&H Inc.'s labor costs each month
are an example of which item in a
cash budget?
W&H Company wants to create a It should monitor its actual cash flows and then revise the cash budget if needed.
cash budget to better manage its
cash flows.
The financial manager knows that
the firm's labor costs and materials
costs are too high for the level of
sales each month. The firm also
needs to keep better track of its
cash flows to assess its need for
additional financing through short-
term loans.
After W&H Inc. has developed a cash
budget, what should the company
do in the following months?
W&H Company wants to create a Cash budgets increase the lender's trust in a firm by demonstrating the
cash budget to better manage its firm's ability to make profits and repay loans.
cash flows.
The financial manager knows that
the firm's labor costs and materials
costs are too high for the level of
sales each month. The firm also
needs to keep better track of its
cash flows to assess its need for
additional financing through short-
term loans.
Why would creating a cash budget
be useful for W&H if the firm needs
a loan from the bank or another
short-term lender?
How do the benefits of knowing the Knowing the cash position allows businesses to recognize when short-
cash position for each period differ term loans are needed, while it allows individuals to analyze progress
between businesses and toward their personal financial goals.
individuals?
Monitoring involves using your tracking record to evaluate cash flows
What is the difference between
against your target, identify patterns and changes in cash flows, and
tracking and monitoring cash
gauge when correction is needed.
flows?
What role does financial Financial forecasting supplements historical data with proposed
2/
5
AM
WGU - D076 UNIT 5 - FINANCIAL FORECASTING AND
BUDGETING EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED GRADED A++
When evaluating a company's Variances show that certain managers or divisions are not meeting targets.
performance, what can variances
on a company's cash budget
indicate?
How far into the future do cash Between one month and one year
budgets usually forecast?
What are three principles of Keep records; develop savings, income, and expense strategies; and
budgeting that are important to use a method that meets your needs and objectives
know before
beginning the budgeting process?
What are the three main uses of cash Cash budgets are used to forecast future financial need, aid in
budgets? performance evaluation, and show when corrective action is needed.
What is the correct order of the Determine cash receipts, estimate cash disbursements, create the cash budget
three steps necessary to create a
cash budget?
Why is "put $50 in a savings account Because it is specific and measurable
each month for Christmas gifts" a
better
budgeting goal than "save money
for Christmas gifts"?
Why would a monthly mortgage Because the payment is the same amount each month
payment be considered a fixed
expense?
Which action would help you make Compare your budgeted cash flows to your actual cash flows, and
your budget more efficient? then revise the budget if necessary.
Which item is an example of a cash A graduation gift of $100 from your grandmother
receipt in a personal budget?
Which item represents an example A rent check paid and cashed for the warehouse the company uses
of a cash disbursement a business
might have this month?
What three things should be Cash receipts, cash disbursements, and borrowing
included in a cash budget for a
business?
Which items are considered cash Raw materials, rent, administrative expenses, interest, and selling expenses
disbursements for a business?
Why are sales not strictly Sales include both cash sales and credit sales.
considered to be the same thing
as cash receipts?
What is the main reason why it is Tracking your cash flows allows you to recognize where and how your
important to track and record cash money is spent so you can monitor your cash flows and revise your
flows? budget as needed.
In what situation might the When a person has a hard time remembering to record their cash flows
software method of tracking be and when they prefer to use a card to make purchases
preferable to the spreadsheet
method of tracking?
What is the purpose of monitoring Monitoring allows you to evaluate whether your actual cash flows
your cash flows? are in line with your goals and to understand when correction or
revision is needed.
Which processes help you identify Monitoring your budget allows you to identify problems, and then
and fix problems in your budget? gradual revision and implementation of new processes allow you to
fix those problems.
1/
5
, 3/31/25, 9:30
AM
W&H Company wants to create a Cash disbursement
cash budget to better manage its
cash flows.
The financial manager knows that
the firm's labor costs and materials
costs are too high for the level of
sales each month. The firm also
needs to keep better track of its
cash flows to assess its need for
additional financing through short-
term loans.
W&H Inc.'s labor costs each month
are an example of which item in a
cash budget?
W&H Company wants to create a It should monitor its actual cash flows and then revise the cash budget if needed.
cash budget to better manage its
cash flows.
The financial manager knows that
the firm's labor costs and materials
costs are too high for the level of
sales each month. The firm also
needs to keep better track of its
cash flows to assess its need for
additional financing through short-
term loans.
After W&H Inc. has developed a cash
budget, what should the company
do in the following months?
W&H Company wants to create a Cash budgets increase the lender's trust in a firm by demonstrating the
cash budget to better manage its firm's ability to make profits and repay loans.
cash flows.
The financial manager knows that
the firm's labor costs and materials
costs are too high for the level of
sales each month. The firm also
needs to keep better track of its
cash flows to assess its need for
additional financing through short-
term loans.
Why would creating a cash budget
be useful for W&H if the firm needs
a loan from the bank or another
short-term lender?
How do the benefits of knowing the Knowing the cash position allows businesses to recognize when short-
cash position for each period differ term loans are needed, while it allows individuals to analyze progress
between businesses and toward their personal financial goals.
individuals?
Monitoring involves using your tracking record to evaluate cash flows
What is the difference between
against your target, identify patterns and changes in cash flows, and
tracking and monitoring cash
gauge when correction is needed.
flows?
What role does financial Financial forecasting supplements historical data with proposed
2/
5
