Question : Assertion: Budgeting is a continuous process of resource allocation.
Reason: Budgets are prepared only once at the beginning of the fiscal year.
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 false, but the reason is correct.
Solution : The correct answer is (c) Assertion is false, but the reason is correct.
The assertion that budgeting is a continuous process of resource allocation is false. While budgeting does involve resource allocation, it is typically done periodically, often on an annual basis. It is not a continuous process in the sense that it happens continuously throughout the fiscal year.
The reason stating that budgets are prepared only once at the beginning of the fiscal year is correct. Budgets are commonly prepared at the beginning of a fiscal year, outlining the planned allocation of resources for that specific period.
Therefore, the assertion is false, but the reason is correct.
Question : Assertion: Budgets help in allocating resources in a planned manner.
Reason: Budgets are related to resource allocation.
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: Budgeting is a part of the planning process.
Reason: Budgets are prepared after the implementation phase of a plan.
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.
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