ICSE Class 10 Commerce 2022 Solved Papers

© examsnet.com
Question : 18
Total: 29
State three differences between Budget and Forecast.
Solution:  
 Budget  Forecast
 1. Budget shows the policy and pro gramme to be follows in a future period under planned conditions.  1. Forecast is a mere estimate of what is likely to happen. It is a statement of probable events which are likely to happen under anticipated conditions during a specified period of time.
 2. It is usually planned separately for each accounting period.  2. It may cover a long period or years.
 3. It reveals the shape or direction of a company's finance.  3. It tracks whether or not the company is meeting its financial goals as outlined in the budget.
© examsnet.com
Go to Question: