All of the Following Are Necessary for Budgets to Be

question 92

Multiple Choice

All of the following are necessary for budgets to be effective except:

• A)Goals should be attainable.
• B)Employees affected by a budget should be consulted when it is prepared.
• C)Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
• D)Managers must be aware of potential negative outcomes of budgeting,such as budgetary slack.
• E)All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period.

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Definitions:

Successful Corporation

A business entity that consistently achieves its goals, which may include profitability, market share expansion, and sustainable growth.

Continuous

A term describing processes or functions that proceed without interruption or cessation.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common stockholders.

Cumulative Preferred Stock

A type of preferred stock that entitles the holder to receive dividends in arrears before common stockholders can receive any dividends.