ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Are a specific plan on how to spend and save money
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Are numerical records which do not express spending results over a specific time period
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Are a blueprint
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Are used as a planning guide
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Detailed explanation-1: -Cash inflows and cash outflows are used to calculate the budget. Operating expenses are a part of the total cash outflow. Setup cost is incurred for starting the business and hence is excluded in the budget calculations. So Option C is the right answer.
Detailed explanation-2: -Which of the following statements about budget acceptance in an organization is true? Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process.
Detailed explanation-3: -Answer and Explanation: The correct answer is B. Provides assurance that accounting records are in accordance with generally accepted accounting principles.
Detailed explanation-4: -Detailed Solution. A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities, and cash flows.