Budgeting is very important process in managing future financing affairs of a business enterprise. So budgeting can result into various benefits or can result into various negative impacts for a business entity. To choose: We have to select out of yes or no for given statements with reference to potential benefits & potential negative outcome of budgeting. 1. ........Budgets help coordinate activities across departments. 2.........Budgets are useful in assigning blame for unexpected results. 3.........A budget forces managers to spend time planning for the future. 4.........Some employees might overstate expenses in budgets. 5.........Budgets can lead to excessive pressure to meet budgeted results. 6.........Budgets can provide incentives for good performance.

Question

Want to see the full answer?

Answer 1

Question

Chapter 22, Problem 2QS

To determine

Introduction:

Budgeting is very important process in managing future financing affairs of a business enterprise. So budgeting can result into various benefits or can result into various negative impacts for a business entity.

To choose:

We have to select out of yes or no for given statements with reference to potential benefits & potential negative outcome of budgeting.

1. ........Budgets help coordinate activities across departments.

2.........Budgets are useful in assigning blame for unexpected results.

3.........A budget forces managers to spend time planning for the future.

4.........Some employees might overstate expenses in budgets.

5.........Budgets can lead to excessive pressure to meet budgeted results.

6.........Budgets can provide incentives for good performance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.

You are the partner-in-charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firm's independence. Neither of these situations has been specifically answered by the AICPA Professional Ethics Division. Case 1: Don Moore, a partner in the firm, has recently moved into a condominium that he shares with his girlfriend, Joan Scott. Moore owns the condominium and pays all the expenses relating to its maintenance. Otherwise, the two are self-supporting. Scott is a stockbroker, and recently she has started acquiring shares in one of the audit clients of this office of the public accounting firm. The shares are held in Scott's name. At present, the shares are not material in relation to her net worth. 1. What arguments would indicating that the firm's independence has not been impaired? 2. What arguments would indicating that the firm's independence has been impaired? 3. Which…

Examine the importance of proper evaluation of investment projects.