WileyPLUS Problem 10.1 Indicate whether the following statements are true or false: 1. A budget is a formal written statement in financial terms of management's plans for a specified future time period. A budget is prepared only once a year. 2. 3. A budget requires all levels of management to plan ahead and to formalize goals on a recurring basis. 4. The budget is an important basis for evaluating performance. 5. The "top-down" approach to budgeting is called participative budgeting. 6. Budgeting and long-range planning are the same. 7. Operating budgets are the individual budgets that are used to prepare the budgeted income statement. 8. The purchases budget is the first operating budget to be prepared. 9. A merchandiser uses a merchandise purchases budget instead of a production budget.