Flashcards
Assignment 18 Chaprer 23
Cards in this deck (17)
- 1Whereas a ______ budget provides a moving twelve-month forecast at any given time, an ______ ______ budget is prepared for one fiscal year.Whereas a CONTINUOUS budget provides a moving twelve-month forecast at any given time, an ANNUAL OPERATING budget is prepared for one fiscal year
- 2Capital budgets should be prepared in order to project wear and tear costs for five or even ten years into the future. (1) True (2) False(1) True
- 3The operating fund is used to pay costs that occur at least ______ per ______. The ______ ______ is the budget for the operating fund.The operating fund is used to pay costs that occur at least ONCE per year. The OPERATING BUDGET is the budget for the operating fund.
- 4What must be contained in a strata corporation's budget?1) Opening Balance, 2) Revenue, 3) Operating Expenses, 4) Transfers, and 5) Ending Balance. For a strata corporation with sections it must create a budget for each section for expenses relating exclusively to the section.
- 5The operating fund is used to pay costs which occur ______ per ______ or more ______.once per year or more frequently
- 6If members of a strata corporation are divided on a special levy necessary for safety or to prevent significant loss or damage, what can a strata corporation do to break the deadlock?Apply to the Supreme Court of BC within 90 days of a vote declining to approve such a resolution, as long as more than 1/2 of the votes were cast in favour of the special levy.
- 7A budget for a major repair will always include two types of costs. What are they?The cost of the project AND any costs necessary to pursue any possible cost recovery (eg. legal or consultants)
- 8Strata corporations with sections are only required to have a budget for each section that covers the expenses relating exclusively to the section. (1) True (2) FalseFalse Strata Corps must also have their own budget for shared expenses.
- 9The ______ ______ ______ records actual revenues and expenses against the budgeted amounts for the current month and the year to date, indicating any variances.The ORPERATING BUDGET STATEMENT/COMPARATIVE records actual revenues and expenses against the budgeted amounts for the current month and the year to date, indicating any variances.
- 10What is the central objective of a depreciation report?To estimate the repair or replacement cost and the expected life of each major item of the common property and the common assets.
- 11The benefits of budgeting include allowing management of a strata corporation to ______ , ______, ______, and ______.to plan, coordinate, control, and authorize.
- 12The operating fund's temporary cash surpluses may be invested in medium to long term mutual funds and exchange traded funds, but legislation prohibits direct investment in a publicly traded company's securities and bonds. (1) True (2) False2. False, the act is silent on specific requirements for investing temporary surpluses.
- 13A balance sheet and operating statement for the operating fund must be prepared each year and an operating statement covering at least the first 8 months of the current period must be presented at the AGM. (1) True(2) FalseFalse, the Operating Statement must cover 10 months not 8.
- 14Normal wear and tear will occasionally require capital expenditures to replace or upgrade physical assets. For that reason, it is advisable to prepare ______ and ______ year budget projections for future costs.5 and 10 year
- 15A strata corporation must prepare an ______ budget. Among other things, the annual operating budget covers the ___ - __-___ operations of a building.ANNUAL budget
covers day-to-day operations - 16What is significant about section 103(1) of the Strata Property Act?Section 103(1) of the Strata Property Act requires a strata corporation to prepare an annual budget.
- 17An ______ _______ is a numeric code that identifies an account, allowing for easier reference.ACCOUNT CODE
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- Budgeting: The Operating Budget and Fund
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