1. Use this list of terms to complete the sentences that follow .

Long range planning

Participative budgeting

Sales forecast

Operating budgets

Master budget

Financial budgets

1. A ________________ shows potential sales for the industry and a company’s expected share of such sales .

2. __________________ are used as the basis for the preparation of the budgeted income statement.

3. The _______________ is a set of interrelated budgets that constitutes a plan of action for a specified time period.

4. ___________________ identifies long term goals, selects strategies to achieve these goals , and develops policies and plans to implement the strategies .

5. Lower level managers are more likely to perceive results as fair and achievable under a ________________ approach.

6. ___________________ focus primarily on the cash resources needed to fund expected operations and planned capital expenditures.