3. Which of the following statements is not true of budgets?
a) Budgets are working documents that need to be monitored and adjusted over time.
b) Budgets are a record of income and expenses and a plan for managing money.
c) Budgets are static documents that should be adhered to no matter what.
d) Budgets are unique to each person, reflecting his or her priorities and situation.

A

Explanation:

- From the perspective of an individual, budget refers to their income - money availability for him/ her to spend and manage. In this situation, each person would have different budgets due to the difference in jobs - source of income as well as expense plan. So that, the answer b and d are true to say about budgets.

- From the perspective of a business or a project, budget is the amount of money available for activities in that project. So that, expenditure of the business or project is limited by the budget, which means the business should adhere to the budgets no matter what. So that the answer c is also true about budgets.