The Process of Preparing a Budget

question 45

Multiple Choice

The process of preparing a budget:

• A)forces coordination and communication across business functions.
• B)reduces overcapacity.
• C)promotes production automation.
• D)increases accounting efficiencies.

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Definitions:

Cash Account

A type of financial account that records cash transactions, including the receipt and spending of cash.

Check Register

A record, often part of a ledger or accounting software, used to track checks issued, deposits, and current account balances.

Cleared

Refers to transactions that have been reconciled and confirmed by a bank or financial institution, indicating that funds have been successfully transferred.

Reconciled

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, confirming the accuracy of financial transactions.