In preparing the budgeted balance sheet, management should not be concerned if it does not balance since it does not reflect actual results.

Name: In preparing the budgeted balance sheet, management should not be concerned if it does not balance since it does not reflect actual results.
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Question

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The budgeted balance sheet should always balance, as it reflects the planned financial position of the company. If it does not balance, management needs to identify and correct any errors in their budgeting process.

In Preparing the Budgeted Balance Sheet, Management Should Not Be