Planning and Budgeting Exam Questions with Correct Answers Latest Update 2025/2026
1. __________are the quantitative expressions of plans stated in either physical or financial term
or both - Answers a. Budgets
_________is the process of setting standards, receiving feedback on actual performance, and
taking corrective action whenever actual performance deviates significantly from planned
performance. - Answers b. Control
Which of the following factors is NOT an advantage of preparing operating budgets - Answers d.
It saves time and resources.
4. Which of the following is NOT an advantage of budgeting? - Answers d. It provides
organizational independence.
5. The budget committee - Answers d. both a and b
(has the responsibility to review the budget, resolves differences that may arise as the budget is
prepared)
The _______________ has the responsibility to review the budget, provide policy guidelines and
budgetary goals, resolve differences that may arise as the budget is prepared, approve the final
budget, and monitor the actual performance of the organization as the year unfolds. - Answers d.
budget committee
7. Which of the following is NOT a responsibility of the budget committee? - Answers a. prepare
actual financial statements
_____ are comprehensive financial plans made up of various individual departmental and activity
budgets. - Answers a. Master budgets
9. _______________ are concerned with the income-generating activities of a firm - Answers b.
Operating budgets
10. _______________ are concerned with the inflows and outflows of cash and with financial
position. - Answers c. Financial budgets
11. Operating budgets are - Answers d. concerned with the income-generating activities of a
firm.
12. The _______________ is responsible for directing and coordinating the overall budgeting
process - Answers c. budget director
13. A _______________ is a moving twelve-month budget. - Answers a. continuous budget
1. __________are the quantitative expressions of plans stated in either physical or financial term
or both - Answers a. Budgets
_________is the process of setting standards, receiving feedback on actual performance, and
taking corrective action whenever actual performance deviates significantly from planned
performance. - Answers b. Control
Which of the following factors is NOT an advantage of preparing operating budgets - Answers d.
It saves time and resources.
4. Which of the following is NOT an advantage of budgeting? - Answers d. It provides
organizational independence.
5. The budget committee - Answers d. both a and b
(has the responsibility to review the budget, resolves differences that may arise as the budget is
prepared)
The _______________ has the responsibility to review the budget, provide policy guidelines and
budgetary goals, resolve differences that may arise as the budget is prepared, approve the final
budget, and monitor the actual performance of the organization as the year unfolds. - Answers d.
budget committee
7. Which of the following is NOT a responsibility of the budget committee? - Answers a. prepare
actual financial statements
_____ are comprehensive financial plans made up of various individual departmental and activity
budgets. - Answers a. Master budgets
9. _______________ are concerned with the income-generating activities of a firm - Answers b.
Operating budgets
10. _______________ are concerned with the inflows and outflows of cash and with financial
position. - Answers c. Financial budgets
11. Operating budgets are - Answers d. concerned with the income-generating activities of a
firm.
12. The _______________ is responsible for directing and coordinating the overall budgeting
process - Answers c. budget director
13. A _______________ is a moving twelve-month budget. - Answers a. continuous budget
