The Authorization Function of Budgets Is Especially Important for Government

question 55

Multiple Choice

The authorization function of budgets is especially important for government and not-for-profit (NFP) entities, where budgeted amounts often serve both as approvals of planned activities (or programs) and as:

• A) Measures of quality.
• B) Indicators of performance.
• C) Certification of actions.
• D) Ceilings for expenditures.
• E) The basis for contract negotiations.

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Definitions:

Ownership

The state or fact of possessing something, typically property or goods, having legal rights and full control over it.

Bulk Sales

A transaction in which a business sells a significant portion of its inventory to a single buyer, often as a part of liquidation.

Article 6

A specific provision within a legal document or constitution; the context varies depending on the document (e.g., U.S. Constitution's Article 6 establishes federal laws as the supreme law of the land).

Creditors

Individuals or organizations to whom money is owed.