Which of the Following Statements Relating to a Master Budget

question 41

Multiple Choice

Which of the following statements relating to a master budget is incorrect?

• A) It is a set of interrelated budgets.
• B) It is normally overseen by a budget committee.
• C) Budget targets are fixed and not subject to revision.
• D) It is typically prepared for a one-year period that coincides with the entity's financial year.

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Definitions:

Legal Requirements

Obligations imposed by law that individuals and organizations are bound to comply with.

Legal Responsibility

The obligation to act according to law, including adhering to statutes, regulations, and being accountable for actions or decisions.

External Regulations

Rules, standards, and laws that an organization must follow, which are imposed by external bodies such as governments or industry associations.

Social Wellbeing

The overall health and prosperity of a society, considering factors like quality of life, social cohesion, and access to resources and services.