Question

A budget is prepared for a .......... period.

• A. Long
• B. Short
• C. Definite
• D. All of these

Hint:

Budgets can be categorized based on the period for which they are prepared. It could be long-term, short-term, or definite, depending on the organizational needs.

Answer 1

The Correct Option is D

Step 1: Understanding the concept of budgeting.
A budget is a financial plan for a defined period, often prepared in the form of a long-term or short-term forecast. A budget can be prepared for various periods, such as a long-term budget (years), a short-term budget (months), or a definite budget for specific projects or activities.
Step 2: Analyzing the options.
(A) Long: This is a possible answer. Budgets can be prepared for long periods, like years.
(B) Short: This is also a possible answer. Budgets can be prepared for short periods, like months.
(C) Definite: This is also correct. A budget can be prepared for a definite period, such as for a specific project or fiscal year.
(D) All of these: Correct. Budgets can be prepared for long, short, or definite periods depending on the need and scope.
Step 3: Conclusion.
The correct answer is (D) All of these, as budgets can be prepared for long, short, or definite periods.