Essay Questions 128.Indicate whether each of the following statements is true or false.Short-term plans are more specific and detailed than long-term plans.Short-term planning focuses on the...

Essay Questions

128.Indicate whether each of the following statements is true or false.


Short-term plans are more specific and detailed than long-term plans.
Short-term planning focuses on the operations of a business for the next two to three years.
A decision to lease equipment would be part of a company's capital budgeting process.
The master budget focuses on long-term objectives and goals.
The master budget normally covers a period of one quarter.

129.Indicate whether each of the following statements is true or false.


A master budget provides information about plans and expectations for the next five years.
A company that uses a participative budget engages in budgeting throughout the year.
One of the benefits of budgeting is that it promotes coordination and communication.
A budget formalizes managerial plans.
At the end of a period, a company should not compare actual results to the budget because budgets are notoriously inaccurate.