Which of the following statements regarding budgets is true?
A) Budgets are detailed forward-looking financial reports based on expected income and expenses.
B) Budgets describe a person's financial position at a given point in time.
C) Budgets measure a person's financial performance at a given point in time.
D) Budgets describe a person's financial goals over time.
E) Budgets are historical documents that tell an individual how he or she has performed in the past.

Question

Quizplus · Accepted Answer

Budgets are forward-looking financial reports that help individuals plan for expected income and expenses. They are not historical documents or a measure of financial performance at a specific point in time. Budgets may include financial goals, but their primary purpose is to provide a detailed plan for managing finances in the future.

Which of the Following Statements Regarding Budgets Is True