Question : Assertion: Budgeting helps in controlling expenditures.
Reason: Budgeting does not involve any control measures.
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.
The assertion that budgeting helps in controlling expenditures is correct. Budgeting involves planning and setting limits on expenditures, providing a mechanism for controlling and monitoring financial activities.
The reason stating that budgeting does not involve any control measures is false. Budgeting is a fundamental control measure as it establishes guidelines and limits for spending, helping organizations manage their financial resources and control expenditures.
Therefore, the correct answer is that the assertion is correct, but the reason is false.
Question : Assertion: Budgeting involves forecasting future financial performance.
Reason: Budgeting is limited to the allocation of resources.
Question : Assertion: A budget is a statement of future income and expenses.
Reason: Budgeting is not related to financial forecasting.
Question : Assertion: Planning helps in reducing uncertainty and risks.
Reason: Planning involves forecasting and assessing potential challenges.
Question : Assertion: A good planning process involves continuous monitoring and control.
Reason: Monitoring helps in identifying deviations and taking corrective actions.
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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