Which of the Following Statements Is Not True

question 45

Multiple Choice

Which of the following statements is not true?

• A) A budget is a detailed plan.
• B) A budget is a management tool.
• C) A budget is prepared on an historical basis.
• D) A budget provides many of the performance targets used in responsibility accounting.

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Definitions:

Debt Extinguishment

The process of discharging or settling a debt, either through repayment or through a financial restructuring agreement.

Bond Premium

The amount by which the market price of a bond exceeds its par value, typically arising when the bond's interest rate is higher than the market rate.

Forward Contract

A customized financial agreement to buy or sell an asset at a specified future date at a price agreed upon today.

Future Date

A specified day in the future, often used in the context of agreements or financial transactions that will occur at a later time.