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8 marksBudgeting and the Master Budget

CAPE Accounting Unit 2 · 2016 · Paper 2 · Question 3(a)

Wilson is planning cash needs for the final quarter of 2016 based on budgeted monthly income statements and operational details regarding inventory, receivables, payables, expenses, and loan repayments.

Prepare an inventory purchase budget for EACH of the months October, November and December.

This question uses a figure or table from the paper — you'll see it when you practise.

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Other parts of this question

  1. 3(b)Prepare a schedule of expected cash disbursement for inventory purchases for EACH of the months October, November and December (final quarter).[6 marks]
  2. 3(c)Prepare a schedule of budgeted cash collections for sales for EACH of the months October, November and December (final quarter).[6 marks]
  3. 3(d)Briefly discuss THREE uses of the budget in a typical organization.[9 marks]
  4. 3(e)Briefly describe the THREE styles of budgeting.[6 marks]

More practice: the rest of this paper · more Budgeting and the Master Budget questions · all CAPE Accounting Unit 2 past papers