ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It facilitates the coordination of activities.
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It provides definite objectives for evaluating performance.
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It provides assurance that the company will achieve its objectives.
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It requires all levels of management to plan ahead on a recurring basis.
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Detailed explanation-1: -Answer and Explanation: The correct answer is B. Provides assurance that accounting records are in accordance with generally accepted accounting principles.
Detailed explanation-2: -It provides definite objectives for evaluating performance. Which of the following is not a benefit of budgeting?-The coordination of activities is facilitated.
Detailed explanation-3: -Which of the following is not a benefit of budgeting? It enables disciplinary action to be taken at every level of responsibility. Budgeting does not necessarily enable disciplinary action to be taken at every level of responsibility.
Detailed explanation-4: -The correct answer is option D. Preventing net operating losses is not a part of budgeting.