1. A realistic, well-managed budgeting process will not reduce the errors of omission and commission in the allocation of resources, either one of which will not cost the organization anything. True/False.
2. Flexible budgets are inferior to a single master budget as it strives to identify specific causes of performance variance and this facilitates remedial actions to be taken. True/False.
3. Lenders view careful cash budgeting as an indication of good management practices. True/False.
4. Regardless of the future potential of an organization, unless cash is available to meet near-term obligations, the organization is effectively out of business. True/False.
5. To permit the early identification of additional fund needs, financial management requires close monitoring of the organization