Which of the following is true of budgets?
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 a specific period of 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E)Budgets are historical documents that tell an individual how he or she has performed in the past.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 detail expected income and expenses over a specific period of time. They help individuals and organizations plan and manage their finances to achieve their financial goals. Option B, C, and E are incorrect as they do not define what budgets are. Option D is partially correct as budgets do describe financial goals, but they are more than just descriptions; they are financial plans to achieve those goals.

Which of the Following Is True of Budgets