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 2017 budget cover? Multiple Choice January 2018-December 2018 March 2017-February 2018 February 2017-January 2018 April 2017-March 2018 December 2017-November 2018

Answer 1

April 2017-March 2018

Step-by-step explanation:

Since the company adopts a continuous quarterly budgeting,in 2017,the first revision and update would take place immediately after the first quarter.

The first quarter of the year ends on 31st March based on a January to December year end,the first revision and update would take 1st day of April 2017,hence the first revision and update would cover a one year period of April 2017 to March 2018,while the second update and revision would be expected July 2017 to June 2018

Answer 2

The correct option is April 2017-March 2018

Step-by-step explanation:

Since the company adopts a continuous quarterly budgeting,in 2017,the first revision and update would take place immediately after the first quarter.

The first quarter of the year ends on 31st March based on a January to December year end,the first revision and update would take 1st day of April 2017,hence the first revision and update would cover a one year period of April 2017 to March 2018,while the second update and revision would be expected July 2017 to June 2018