To Overcome Possible Problems with Budgets That Are Developed Only

question 71

Multiple Choice

To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use:

• A) Activity based budgets
• B) Authoritative budgets
• C) Flexible budgets
• D) Participative budgets

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Definitions:

Liable

Liable means responsible by law; legally answerable.

Stop Payment

An instruction to a bank not to honor a check or payment previously authorized, often due to disputes or errors in the transaction.

Drawee Bank

The bank upon which a check is drawn and is responsible for paying the amount specified.

Bank Officer

An individual who holds a management or executive position within a banking institution, responsible for certain operational aspects.