A Good Budgeting System Forces Managers to Examine the Business

question 35

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)get promoted for doing a good job.
• D)complete the budgeting task on time.

---

Definitions:

Unrealized Gain

Profit that has been achieved on paper due to an increase in the value of an investment but has not yet been realized through a sale.

Trading Investment

A trading investment refers to securities bought and held primarily for selling them in the near term with the aim of profiting from short-term price fluctuations.

Realized Gain

A profit that results from selling an asset at a higher price than its purchase cost, officially recognized when the asset is sold.