The Main Advantage of Using a Rolling Budget Is

question 78

Multiple Choice

The main advantage of using a rolling budget is:

• A) The role of information technology in its preparation
• B) Its incorporation of more current information than static or flexible budgets
• C) The reduced need for lower-level input
• D) The ease of calculating variances compared to static or flexible budgets

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to the reversal of revenue and reduction in sales figures.

Gross Accounts Receivable

The total amount owed to a company by its customers before deducting any allowance for doubtful accounts.

Accrual Accounting

A financial recording approach in which earnings and expenditures are documented upon being accrued, without considering the timing of the associated cash movements.

Sell Receivables

The process of selling a company's accounts receivable to a third party at a discount in order to obtain immediate cash.