A budget provides a guideline for expected financial outcomes and allows for comparison with actual results. In the event that budgeted figures do not match actual figures, corrective action can be taken to identify and address any discrepancies. It is not related to past financing needs or human resource evaluations, and budgets can be created for any time period, not just annually.

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A Budget

Question 143

Multiple Choice

A budget

A) records the amount and timing of the firm's past financing needs.
B) provides a basis for taking corrective action in the event that budgeted figures do not match actual or realized figures.
C) remains independent of the human resource performance evaluation task.
D) only makes sense for annual periods of time.

Correct Answer: