Question : Assertion: Budgets help in evaluating the performance of different households.
Reason: Budgets do not provide any information on departmental performance.
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 budgets help in evaluating the performance of different households is false. Budgets are typically used to plan and manage financial resources within organizations or for individual households, not to evaluate their performance.
The reason stating that budgets do not provide any information on departmental performance is correct. Budgets are primarily financial plans that outline expected revenues and expenditures. While they can be used as part of performance evaluation in terms of financial management, they may not provide comprehensive information on overall departmental performance, which often requires additional performance metrics and evaluations.
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 a part of the planning process.
Reason: Budgets are prepared after the implementation phase of a plan.
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 continuous process of resource allocation.
Reason: Budgets are prepared only once at the beginning of the fiscal year.
Question : Assertion: Planning helps in reducing uncertainty and risks.
Reason: Planning involves forecasting and assessing potential challenges.
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