A Budget Can Be Used as an Effective Control Tool

question 23

Multiple Choice

A budget can be used as an effective control tool in monitoring an entity's achievements of its plans if the structure of its master budget mirrors the entity's:

• A) balance sheet.
• B) chart of accounts.
• C) statement of profit or loss.
• D) statement of cash flows.

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Definitions:

Structuralist Approach

An analytical method in psychology focusing on breaking down mental processes into the most basic components.

Spatial Abilities

The capacity to understand, reason, and remember the spatial relations among objects or space.

Evolutionary Explanation

A theory or interpretation of a phenomenon that is based on the principles of evolution, often focusing on the adaptive value or historical origin of certain behaviors, traits, or structures.

Mental Rotation

The ability to mentally turn or rotate a three-dimensional object and understand how it would look from a different perspective.