Which of the following statement is correct regarding a continuous budget?
A)The budget is prepared for a one-year period that corresponds to the company's fiscal year.
B)A continuous budget is a monthly budget.
C)As a month/period expires in the budget, an additional month/period in the future is added so the company always has a 12-month budget on hand.
D)None of these

Question

Quizplus · Accepted Answer

A continuous budget is an ongoing budget that is updated regularly, typically on a monthly basis. As each month/period in the budget expires, an additional month/period in the future is added so the company always has a 12-month budget on hand. This allows for more accurate forecasting and budgeting throughout the year. Option A is incorrect because a continuous budget does not necessarily correspond to the company's fiscal year. Option B is incorrect because a continuous budget is not limited to monthly periods. Option D is incorrect because there is a correct statement regarding continuous budget.

Which of the Following Statement Is Correct Regarding a Continuous