Question 1 1 point The process of creating a budget can sugg

Question 1 (1 point)

The process of creating a budget can suggest goals, behaviors, and limitations

Question 2 (1 point)

Budgets are usually created with a specific goal in mind, such as cutting spending.

Question 3 (1 point)

The budget process begins with a thorough understanding of your

current financial condition.

financial statements.

desires and choices.

a. and b.

a., b., and c.

Question 4 (1 point)

Budgets can be prepared conservatively by

underestimating costs.

underestimating earnings.

overestimating goals.

overestimating results.

reconciling behaviors and goals.

Question 5 (1 point)

Financial statements are summaries of past realities, but budgets reflect current realities.

Question 6 (1 point)

You should reassess your budget at least once a week.

Question 7 (1 point)

You should have at least one full year’s worth of data on incomes and expenditures to see

seasonal variations.

periodic items.

monthly averages.

a. and b.

a., b., and c.

Question 8 (1 point)

Once set, budgets should be followed without deviation.

Question 9 (1 point)

A comprehensive budget includes projections of

recurring incomes and expenses.

non-recurring expenditures.

non-recurring income.

a. and b.

a., b., and c.

Question 10 (1 point)

The budget process is a recursive process that begins and ends with defining or redefining goals.

Solution

Question 1. TRUE, We create the Budget to set up goals and understanding our limitations and to achieve the goals in such limitation and so a a process of creating a budget will definately show the goals, behaviour ad limitations.

Question 2. True, The budget are generally created with a specific goal in mind.

Question 3, a, b & c. The budget is the future forecast and so it must be prepared in all possible way to achieve the target. We must consider to Company financial position and its financial statements to forecast. What company has achived and what to be achived. From Achieved to to be achived there is a thick line which can be eliminated using goals, desires and choices. and so all the 3 option are important in budget process.

Question 4, Understamating Earnings. A conservative approach is an approach in which we prepare budget with high conservatine or protective way. We understatmate the Earnings and Overstimate the Costs. We ignore the furture earnings which is not sure but we must consider the expenses which we are even not sure.

Question 5, True. A budget is prepared for the future and so it must reflect the current possibities of achievement whereas a financial statement is the outcome of past activities.

As per chegg policy only 1 questttion or 4sub part can be answered ata time. I have answered 5 question for you. I hope you understand and Please rate good if you find it helpful. Thanks