Select the Correct Statement About Budgeting and Human Behavior

question 90

Multiple Choice

Select the correct statement about budgeting and human behavior.

• A) People are usually very comfortable with budgets.
• B) The attitudes of upper managers significantly impact budget effectiveness.
• C) Budgets increase individual freedom within an organization.
• D) Participative budgeting contributes to fear and resentment.

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Definitions:

Accounts

Recordings within an accounting system that track financial transactions and their effects on specific assets, liabilities, equity, revenues, and expenses.

Balances

Refers to the amount of money in a financial account, the difference between debit and credit totals in an account, or the amount remaining unpaid on a debt.

Business Enterprises

Organizational entities engaged in commercial, industrial, or professional activities, aiming to generate profits from their operations.

Accountants

Experts who conduct financial analyses or audits in adherence to established procedures.