Which of the following statements best describes a budget?
A) It is a statement of expected results expressed in numerical terms.
B) It is document that describes the organizational goals and objectives.
C) It is a computerized system designed to produce information.
D) It is a graphical depiction of the relationship of volume of operations to profits.
E) It is the point at which sales revenues are the same as expenses.

Question

Quizplus · Accepted Answer

A budget is a financial plan that expresses expected results in numerical terms. It sets out the financial targets in terms of revenue, expenditure, and profit for a given period. A budget allows an organization to plan, monitor, and control its expenses and assesses its financial performance against its objectives. It forecasts how much money an organization will spend and how much revenue it will generate over a particular period. Option B describes a strategic plan, Option C describes an information system, Option D describes a breakeven point, and Option E describes the breakeven analysis.

Which of the Following Statements Best Describes a Budget