Budgets are:
A) future oriented.
B) for managers only.
C) required by GAAP.
D) typically not used by small business.

Question

Quizplus · Accepted Answer

Budgets are forward-looking and are used to plan and project future revenues and expenses. The purpose of a budget is to help individuals or organizations manage their finances and make informed decisions about how to allocate resources in the future. While budgets are typically used by managers, they can also be useful for individuals and small businesses. While GAAP may require certain types of budgets for financial reporting purposes, budgeting is not necessarily required by GAAP in all situations.

Budgets Are