Which of the Following Statements Regarding Budgets Is True

question 45

Multiple Choice

Which of the following statements regarding budgets is true?

• A)Budgets are detailed forward-looking financial reports based on expected income and expenses.
• B)Budgets describe a person's financial position at a given point in time.
• C)Budgets measure a person's financial performance at a given point in time.
• D)Budgets describe a person's financial goals over a specific period of time.
• E)Budgets are historical documents that tell an individual how he or she has performed in the past.

---

Definitions:

Contingent Consideration

Usually, an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return of previously transferred consideration if specified conditions are met.

Carrying Amounts

The value at which an asset or liability is recognized in the balance sheet, considering factors like depreciation or amortization.

Appendix B

Often refers to a specific section within a document or standard that provides additional details or clarifications.

Foreign Subsidiary

A company that is partially or wholly owned but controlled by a parent company situated in another country.