A Good Budgeting System Forces Managers to Examine the Business

question 143

Multiple Choice

A good budgeting system forces managers to examine the business as they plan, so they can:

• A)detect inaccurate historical records
• B)set specific expectations against which actual results can be compared
• C)complete the budgeting task on time
• D)get promoted for doing a good job

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Definitions:

Adverse Opinion

An auditor’s opinion that states that deviations from generally accepted accounting principles are so serious that an unqualified opinion is impossible and a qualified opinion is not justified.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

FASB

Stands for Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

Ostensible Authority

Occurs when a hospital leads a patient to believe that a physician with staff privileges is an employee of the hospital.