Question

In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2015 budget cover? Select one: a. February 2015-January 2016 b. March 2015-February 2016 c. December 2015-November 2016 d. April 2015-March 2016 e. January 2016-December 2016

Answer 1

Answer:

d. April 2015-March 2016

Explanation:

After March 2015, The Continuous budget will be updated for the 12-month, period starting from April 2015 to March 2016.

such that:

Quarter 1 - January to March

Quarter 2 - April to June

First revision and update will be on the basis of outcomes of Quarter 1, for the one year year period starting from Quarter 2.

Therefore, The period would the first revision and update to the January through December 2015 budget cover April 2015 to March 2016.