Which of the Following Statements About Budgeting Is NOT True

question 188

Multiple Choice

Which of the following statements about budgeting is NOT true?

• A) The operating budget should be prepared by top management, rather than mid-management personnel, because they have the overall objectives of the company in mind.
• 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:

Taxpaying Entity

An individual, a company, or an organization that is legally obligated to pay taxes to a governmental authority.

Option of Partners

The right or ability within a partnership to make decisions or select alternatives regarding the business's operation or structure.

General Partner

In a limited partnership, a partner who assumes responsibility for the management of the partnership and has full liability for all partnership debts.

Limited Partnership

A business structure where at least one partner has unlimited liability and one or more partners have limited liability, limiting their personal risk.