Michael is a case manager for a homeless shelter in a large metropolitan city. Last week, the program director asked Michael to be the leader of the budget-planning committee. Michael was a member of the committee last year, and he agreed to lead this committee because of previous experience.
As Michael planned for the first meeting, he reviewed the minutes from the previous year's committee meetings and spoke with Angela, who led the previous year's committee. Angela described the different purposes of a budget, as well as the different features of a budget. She suggested that Michael create a list of all the different expenditure categories as a way to guide the discussion during the committee meetings.
While preparing for the first committee meeting, Michael decides that he should include an understandable definition of a budget. Which of the following statements should Michael include in this definition?
I.A budget describes agency income and expenditures.
II.A budget determines the agency's policies and procedures.
III.A budget determines how the agency is funded.
IV.A budget is a detailed plan of action.
V.A budget has two purposes: planning and controlling.
A)I, II, III, IV, and V
B)I, II, and III
C)I, II, and V
D)I, IV, and V

Question

Michael is a case manager for a homeless shelter in a large metropolitan city. Last week, the program director asked Michael to be the leader of the budget-planning committee. Michael was a member of the committee last year, and he agreed to lead this committee because of previous experience.
As Michael planned for the first meeting, he reviewed the minutes from the previous year's committee meetings and spoke with Angela, who led the previous year's committee. Angela described the different purposes of a budget, as well as the different features of a budget. She suggested that Michael create a list of all the different expenditure categories as a way to guide the discussion during the committee meetings.
While preparing for the first committee meeting, Michael decides that he should include an understandable definition of a budget. Which of the following statements should Michael include in this definition?
I.A budget describes agency income and expenditures.
II.A budget determines the agency's policies and procedures.
III.A budget determines how the agency is funded.
IV.A budget is a detailed plan of action.
V.A budget has two purposes: planning and controlling.
A)I, II, III, IV, and V ​
B)I, II, and III
C)I, II, and V
D)I, IV, and V

Quizplus · Accepted Answer

A budget is essentially a financial document that outlines an organization's income and expenditures (I), serves as a detailed plan of action for financial management (IV), and has dual purposes of planning and controlling financial resources (V). It does not directly determine an agency's policies and procedures (II) or how the agency is funded (III), although it may reflect these aspects.

Michael Is a Case Manager for a Homeless Shelter in a Large