The process of planning future business actions and expressing those plans in a formal manner, usually in monetary terms, is called budgeting.

The budgeting process can be used to promote a positive effect on employees' attitudes, but it can also yield a negative one.

The task of preparing the budget normally is the responsibility of one department, the controller's department or a department of one of the high-level managers.

Most successful businesses generally prepare their budgets from 'the top down'. These budgets are tightly controlled by upper management.

Since the budget period normally coincides with the accounting period, budgets of less than one year or greater than one year are not normally prepared.

Which of the following is NOT true about the Master Budget?

The presence of excess capacity increases the need for discretionary financing for any level of sales increase.

A firm’s sustainable rate of growth (g*) is determined by which of the following:

Which of the following would decrease the need for additional discretionary financing, everything else constant?

Which of the following would be classified as spontaneous liabilities?

A flexible budget differs from a fixed budget in that more than one set of input values for variables such as Sales are used.