Question

ASSERTION: Budgets act as a safeguard.

REASONING: By providing an automatic check on the judgement of executives.

Options

• A is true, and R is the correct explanation for A.

• A is true, and R is not the correct explanation for A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true, and R is the correct explanation for A.

Explanation:

• Assertion (A) is true because budgets protect a business from financial waste.
• Reasoning (R) is true as budgets impose predefined limits that restrict arbitrary spending.
• Since this automatic check on executive decisions is exactly how the budget safeguards company funds, R is the correct explanation for A.