Which of the Following Are Benefits of Budgeting

question 48

Multiple Choice

Which of the following are benefits of budgeting?
I. Budgeting ensures future events will never catch management by surprise
II. Budgeting establishes organisational goals
III. Budgeting is a means of coordination
IV. Budgeting provides useful work for accounting staff

• A) I and II only
• B) II and III only
• C) II and IV only
• D) I, II, III and IV

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Definitions:

Sales-Type Lease

A lease agreement where the lessor recognizes immediate profit similar to a sale, often used in the context of finance leases in accounting.

Unearned Interest: Leases

Interest that has been collected on a lease but not yet earned, often because the period it covers has not fully elapsed.

Present Value Factors

Numeric factors used in calculating the present value of future cash flows, reflecting the time value of money.

Interest Revenue

Income earned from investments in interest-bearing assets like bonds, loans, and savings accounts.