Which of the following is a correct definition of budget? Select one: O a. A statement which includes the strategic objectives of a company to be achieved in the long term. O b. A financial and/or quantitative statement, prepared and approved prior to define period of time, of the policy to be pursued during that period for the purpose of attaining a given objective O c. A financial statement which reports the achieved and not achieved objectives of the company for a period of time. O d. A financial and/or quantitative statement, prepared and approved after a define period of time, of the policy pursued during that period for the purpose of evaluating the objectives achieved.
Which of the following is a correct definition of budget? Select one: O a. A statement which includes the strategic objectives of a company to be achieved in the long term. O b. A financial and/or quantitative statement, prepared and approved prior to define period of time, of the policy to be pursued during that period for the purpose of attaining a given objective O c. A financial statement which reports the achieved and not achieved objectives of the company for a period of time. O d. A financial and/or quantitative statement, prepared and approved after a define period of time, of the policy pursued during that period for the purpose of evaluating the objectives achieved.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Which of the following is a correct definition of budget?
Select one:
O a. A statement which includes the strategic objectives of a company to
be achieved in the long term.
O b. A financial and/or quantitative statement, prepared and approved
prior to define period of time, of the policy to be pursued during that
period for the purpose of attaining a given objective
O c. A financial statement which reports the achieved and not achieved
objectives of the company for a period of time.
O d. A financial and/or quantitative statement, prepared and approved
after a define period of time, of the policy pursued during that period
for the purpose of evaluating the objectives achieved.
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