In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year,what period would the first revision and update to the January through December 2017 budget cover?
A)February 2017-January 2018
B)March 2017-February 2018
C)December 2017-November 2018
D)April 2017-March 2018
E)January 2018-December 2018

Question

Quizplus · Accepted Answer

Continuous budgeting involves regularly updating the budget by adding a new period (e.g., month, quarter) as the current period concludes. For a company that revises its budget quarterly, the first revision to the January-December 2017 budget would occur at the end of the first quarter, thus covering April 2017 through March 2018.

In a Company That Employs Continuous Budgeting on a Quarterly