 In this presentation we will take a look at multiple choice questions related to budgeting, going through the question and then practicing test taking skills with them. First question. First a word from our sponsor. Actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but that's okay whatever because our merchandise is is better than their stupid stuff anyways. Like our trust me I'm an accountant product line. Yeah it's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions. If you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Guidance of the budget process is done by a chief meeting officer, b chief executive officer otherwise known as the CEO or c chief financial officer otherwise known as the CFO or d budget committee or e board of directors. Let's go through this again using the process of elimination guidance of the budget process is done by so this is the budget process we're guiding through the budget process who was responsible for the guidance of the budget process we can say a chief meetings officer that's a funny term I'm not sure there's a thing that's called chief meetings office sounds funny doesn't sound like a good title so I'm not going to go without b says chief executive officer well if the budget's really important maybe that seems familiar you know c says chief financial officer again it's a financial type thing so maybe we can see think that that would be it d says budget committee now that sounds familiar I think we've dealt with something called the budget committee so I'll keep that and then the board of directors also sounding pretty pretty important so all four of these sound like big people in the organization and the budget is a big planning process and goal so we might need to narrow that down so let's go through it again guidance of the budget process is done by is it the chief executive officer the chief financial officer the the budget committee or the board of directors now of all those people note that the board of directors is typically not not usually involved in the day to day kind they usually hire management right they hire management and then the management is the one that's going to be designing and putting together the information to drive the company which is of course the planning of the budgeting process so the board of directors probably not in the day to day or the or the planning directly oftentimes so maybe not the board of directors then the ceo the cfo the budget committee you would think of those items they would be the budget committee because that's that's what the budget committee is put there for and notice the emphasis is on the budget committee because the goal here is on the process so remember we're trying to put together a process for the budgeting process that will ultimately have to be a kind of approved of course by executive and top management but the process of it how do we put it together how do we put the process together how do we have the communication that will be executed will be through the budget committee typically so we'll go through this again final answer guidance of the budget process is done by D budget committee next question budgets periodically revised to have new periods added replacing the ones past A normal budget B master budget C period budget D strange budget and E rolling budget all right let's go through this again using the process of elimination budgets periodically revised to have new periods added replacing the ones past A normal budget that doesn't seem totally normal but I'll keep it for now B says master budget that sounds like a familiar term so I'll keep it for now C says period budget you know that almost seems like it's made up period period budget maybe but I'm going to cross it I don't think D says strange budget and that might be strange it might be a little it sounds a little unusual but I doubt that's the term and E says rolling budget and if I apply apply out what's happening that sounds kind of kind of like what it would be sounds kind of rolling ish so let's go through this again budgets periodically revised to have new periods added replacing the ones past either A normal budget B master budget or E rolling budget now note that these first two the normal budget and the master budget are kind of I would think kind of similar there those are you know the master budget is the normal kind of budgeting process you would think E is the one that's a little bit different that sounds kind of like what's happening here we're going to we're going to have budgets periodically revised to have the new periods added replacing the old ones that sounds like a rolling budget and that's actually what it's going to be so the normal budget is going to be kind of the static kind of yearly budget that you break down in the quarters possibly then months the rolling budgets the one where you're always kind of looking out you're always looking out in the future always got that time period the headlights are always basically a year out into the future because we're keep on rolling forward so final answer budgets periodically revised to have new periods added replacing the ones past E rolling budget