In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each y

Question

3 years ago

6

In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each y

ear, what period would the first revision and update to the January through December 2017 budget cover? Multiple Choice January 2018-December 2018 March 2017-February 2018 February 2017-January 2018 April 2017-March 2018 December 2017-November 2018

Business

1 answer:

Kisachek [45] · Answer 1 · 2022-01-02T10:53:57+03:00

Answer:

The correct option is April 2017-March 2018

Explanation:

Since the company adopts a continuous quarterly budgeting,in 2017,the first revision and update would take place immediately after the first quarter.

The first quarter of the year ends on 31st March based on a January to December year end,the first revision and update would take 1st day of April 2017,hence the first revision and update would cover a one year period of April 2017 to March 2018,while the second update and revision would be expected July 2017 to June 2018