Question : Assertion: A budget is a statement of future income and expenses.
Reason: Budgeting is not related to financial forecasting.
Option 1:
Both assertion and reason are correct, and the reason is a correct explanation.
Option 2: Both assertion and reason are correct, and the reason is not correct explanation.
Option 3: Assertion is false, but the reason is correct.
Option 4: Assertion is correct, but the reason is false.
Correct Answer: Assertion is correct, but the reason is false.
Solution : The correct answer is (d) Assertion is correct, but the reason is false.
Assertion is a statement of future income and expenses. This statement is correct. A budget is indeed a plan that outlines an organization's or individual's expected income and anticipated expenses over a specific period.
Reason is not related to financial forecasting. This statement is false. Budgeting is closely related to financial forecasting. In fact, budgeting often involves making projections and estimates about future income and expenses to create a plan for financial management.
Therefore, the assertion is correct, but the reason provided is incorrect.
Question : Assertion: Budgeting involves forecasting future financial performance.
Reason: Budgeting is limited to the allocation of resources.
Question : Assertion: Budgeting helps in controlling expenditures.
Reason: Budgeting does not involve any control measures.
Question : Assertion: Budgeting is not an ongoing process in an organization.
Reason: Budgets are prepared only once at the beginning of a financial year.
Question : Assertion: Planning helps in reducing uncertainty and risks.
Reason: Planning involves forecasting and assessing potential challenges.
Question : Assertion: Budgeting is a part of the planning process.
Reason: Budgets are prepared after the implementation phase of a plan.
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