A Budget Is Most Likely to Be Effective If

question 68

Multiple Choice

A budget is most likely to be effective if

• A) it is used to assess blame when things do not occur according to plans.
• B) it is not used to evaluate a manager's performance.
• C) employees and managers at the lower levels do not get involved in the budgeting process.
• D) it has top management support.

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Definitions:

Account Balances

The amount of money in a financial repository, such as a checking account, at any given moment.

Reference Column

A column in ledgers or journals used to cross-reference or track specific transactions.

General Journal

A comprehensive accounting ledger that records all financial transactions of a company in chronological order before they are transferred to specific accounts.

General Ledger

A collection of a company's financial accounts, where transactions are recorded in separate accounts to maintain a comprehensive financial record.