Which of the Following Statements About Budgeting Is INCORRECT

question 87

Multiple Choice

Which of the following statements about budgeting is INCORRECT?

• A) Budgeting is an accounting function and does not need involvement of operations personnel.
• B) Budgeting is an aid to planning and control.
• C) Budgets help to coordinate the activities of the entire organization.
• D) Budgets promote communication and coordination between departments.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, considering both interest payments and capital gains.

Real Rate

The expected return rate an investor anticipates, adjusted for inflation.

Semi-Annual Coupon

Describes the interest payment made to bondholders every six months until the bond's maturity date.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and the repayment of the principal.