Which of the following statements IS NOT true?

Question

The budget is a guide and should be regarded as flexible
The budgets are unstable and some special circumstances always occur
The budget should not be changed randomly or whenever something happens
If the contingent funds are not used by the end of the budget period, it should be returned to the organization

Answer 1

The statement that IS NOT true is:

"If the contingent funds are not used by the end of the budget period, it should be returned to the organization."

Typically, contingent funds are allocated for specific unforeseen expenses, and depending on the organization's policies, any unspent funds may not necessarily need to be returned; they might be carried over to the next budget period or reallocated based on the organization's discretion. The handling of unspent contingent funds can vary by organization or budgetary policies.