Yiheng Was New to His Organization but Quickly Noticed a Pattern

question 73

Multiple Choice

Yiheng was new to his organization but quickly noticed a pattern at the annual budgeting session. Midlevel managers were asking for unrealistically high budgets while top management was attempting to require budgets under last year's actual expenditures. Both parties were using strategies that are referred to as

• A) Budget breakdowns.
• B) Bureaucratic budgeting.
• C) Budget resistance.
• D) Tactical behaviors.
• E) Rigid behaviors.

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Definitions:

Governmental Funds

Categories of funds used by governments to account for financial resources devoted to specific purposes other than business-type activities.

Current Financial Resources

Refers to the liquid assets available to a company for use in its immediate or short-term operations, including cash and other assets that can be quickly converted into cash.

Government-Wide Financial Statements

Comprehensive financial reports that encompass all the financial activities of a government entity and its component units.

GAAP-Based Financial Statements

Financial statements prepared according to Generally Accepted Accounting Principles, which serve as the standard framework of guidelines for financial accounting.