238) Budgets are normally used only by profit-making businesses. a. true b. f

238) Budgets are normally used only by profit-making businesses.
a. true
b. false 239) Armando Company owns 15000 of the 50000 shares of common stock outstanding of Tito Company and exercises a significant influence over its operating and
financial policies. The investment should be accounted for by the
a. market method
b. equity method
c. cost or market method
d. cost method 240) The objectives of budgeting are (1) establishing specific goals for future operations (2) executing plans to achieve the goals and (3) periodically
comparing actual results with these goals.
a. true
b. false
241) When budget goals are set too tight the budget becomes less effective as a tool for planning and controlling operations.
a. true
b. false