A-LevelAccountingBudgeting and budgetary control9706/12 · May/June 2017 · Q301 Mark

Which statement is not a reason why a business prepares budgets?

Ato ensure coordination of the business activities

Bto identify potential problems in the future

Cto identify the responsibilities of managers

Dto prepare the financial statements for the year

✓ Correct answer

D: to prepare the financial statements for the year

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Topic: Budgeting and budgetary control, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2017 Paper 1 Variant 2, question 30.

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