What this practice covers
These questions are drawn from past CIE 9706 Accounting papers and filtered to budgets and planning. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on budgets and planning, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Preparing budgets in the wrong order, or starting somewhere other than the principal budget factor.
- Adding opening inventory and deducting closing inventory in the production budget.
- Forgetting to convert production units into kilograms before adjusting for materials inventory.
- Putting sales in the cash budget in the month of sale.
- Including depreciation in the cash budget.
- Treating the master budget as an input to the process.
- Saying the cash budget shows profit. It shows liquidity.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Budgets and planning revision notes.