Which of the Following Does Budgeting NOT Provide

question 123

Multiple Choice

Which of the following does budgeting NOT provide?

• A)An ethical framework for decision making
• B)A means to communicate the organisation's short-term goals to its members
• C)Support for the management functions of planning and coordination
• D)A means to anticipate problems

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Definitions:

Allowance Method

An accounting technique used to estimate and record uncollectible accounts receivable, reducing the net value of accounts receivable to an amount expected to be collected.

Credit Sales

Sales in which revenue is recognized at the point of sale but payment is deferred till a later date, typically employed in business-to-business transactions.

Uncollectible Accounts

Receivables that are deemed to be uncollectable from debtors, leading to their recognition as a loss.

Credit Policy

Guidelines that define the credit limits and terms extended by a business to its customers.