Question : Statement 1: Budgeting is a continuous process.
Statement 2: Budgets help in controlling financial activities.
Option 1: Both statements are correct.
Option 2: Only statement 1 is correct.
Option 3: Only statement 2 is correct.
Option 4: Neither statement 1 nor statement 2 is correct.
Correct Answer: Both statements are correct.
Solution : The correct answer is (a) Both statements are correct.
Statement 1 is correct. Budgeting is not a one-time event; rather, it is an ongoing and iterative process that involves planning, monitoring, and adjusting financial activities over time. Continuous budgeting allows organizations to adapt to changes and make informed decisions.
Statement 2 is also correct. Budgets are comprehensive financial plans that include allocations for various resources, expenses, and revenues. They serve as a tool for controlling and managing financial activities within an organization.
Therefore, both statements are correct.
Statement 2: Budgets help in controlling staffing activities.
Question : Statement 1: Budgeting is a frequent process.
Question : Statement 1: A budget is a tertiary plan.
Statement 2: Budgeting helps in controlling financial activities.
Question : Statement 1: A budget is a financial plan.
Statement 2: Budgeting helps in resource allocation.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile