Which of the Following Is NOT True About Cash Basis

question 46

Multiple Choice

Which of the following is NOT true about cash basis budgeting?

• A) Cash basis budgeting permits a government to balance its budget by delaying cash disbursements.
• B) Cash basis budgeting permits a government to balance its budget by advancing the recognition of revenue.
• C) Cash basis budgeting encourages interperiod equity.
• D) Cash basis budgeting complicates financial accounting and reporting.

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Definitions:

First Stage Allocations

The initial process of assigning overhead costs to different departments or cost pools in activity-based costing.

Supervising Activity

The process of overseeing and directing work activities and tasks to ensure they are executed efficiently and effectively, typically within a workplace.

Activity-Based Costing

A costing method that assigns costs to products and services based on the activities and resources that go into creating them.

Overhead Cost

Refers to all ongoing business expenses not directly tied to producing a specific product or service, such as rent, utilities, and administrative salaries.