Which of the Following Statements Regarding Budgeting Is False

question 52

Multiple Choice

Which of the following statements regarding budgeting is false?

• A) The focus of budgeting is planning.
• B) Many companies use enterprise resource planning (ERP) systems as a budgeting tool.
• C) Budgeting is a bookkeeping task.
• D) Budgeting helps managers determine the resources needed to meet their goals and objectives.

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Definitions:

Capital Stock

The total amount of a company's capital, represented by the shares of its stock.

Commission Charges

Commission charges are fees paid for services, particularly in the fields of finance and real estate, calculated as a percentage of the transaction value.

Dollar Amount

The value of something measured in units of currency, specifically U.S. dollars.

Preferred Stock

A class of stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and which typically has priority over common stock in the event of a liquidation.