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Mary$$ Jacobs, the controller of the Jenks Company is working on$$ Jenks' cash budget for year $2.$ She has information on each of the following$$ items:

I.

Wages due to workers accrued as of December$31,$ year $1.$

II$.$

Limits on a line of credit that may be used to fund$$ Jenks' operations in year $2.$

III.

The balance in accounts payable as of December$31,$ year$1,$ from credit purchases made in year $1.$

Which of the items above should Jacobs take into account when building the cash budget for year$2?$

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Part $1$

A$.$

I and II

B$.$

I and III

C$.$

II and III

D$.$

$$I$,$ II$,$ and III

I.

In a cost$$ center, managers are responsible for controlling costs but not revenue.

II$.$

The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent.

III.

To be$$ effective, a good responsibility accounting system must help managers to plan and to control.

IV$.$

Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager.

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Part $1$

$1.$

I and II only are correct

$2.$

II and III only are correct

$3.$

$$I$,$ II$,$ and III are correct

$4.$

$$I$,$ II and IV are correct

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