Select the Incorrect Statement Regarding the Human Factor in the Budgeting

question 56

Multiple Choice

Select the incorrect statement regarding the human factor in the budgeting process.

• A) Budgets force employees to follow the organization's plan.
• B) The evaluation feature of budget systems is frightening for many people.
• C) There is a tendency for people to be uncomfortable with budgets.
• D) Proper handling of human relations is essential to the establishment of an effective budget system.

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Definitions:

Depositor's Account

An account maintained by a depositor at a financial institution, representing deposited funds that can be withdrawn.

Bank

A financial institution licensed to receive deposits, offer loans, and provide other financial services, such as currency exchange.

Note Receivable

A financial asset representing a borrower's promise to pay the holder a specific sum of money either on demand or at a future specified date.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement.