In Regard to Budgets, Which of the Following Statements Is

question 56

Multiple Choice

In regard to budgets, which of the following statements is not true?

• A) Budgets include an itemized forecast of a company's expenses.
• B) Budgets are a poor tool for financial control.
• C) Budgets are an important tool for financial planning.
• D) Budgets include an itemized forecast of a company's capital needs.
• E) Budgets include an itemized forecast of a company's income.

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Definitions:

Budget Line Equation

An economic model that represents all combinations of goods and services that a consumer may purchase given current prices within their income level.

Entertainment Budget

An estimate of the money allocated for leisure and entertainment activities within a certain period.

Electronic Matrix

A spreadsheet.

Spreadsheet

An electronic worksheet where data is entered into cells that can contain numbers, words, or formulas.