A-LevelAccountingBudgeting and budgetary control9706/12 · May/June 2018 · Q301 Mark

Why might a business prepare a budget?

Ato determine the amount of bank loan it needs

Bto determine the skills of labour force

Cto identify its market share

Dto identify the quality of its products

✓ Correct answer

A: to determine the amount of bank loan it needs

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Topic: Budgeting and budgetary control, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2018 Paper 1 Variant 2, question 30.

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