01 Which statement correctly identifies both procedure and budget?
Answer and explanation
Correct answer: A. Obtaining approval before making payment is a procedure, and an expenditure limit of ₹2 lakh for payment is a budget.
Explanation: A procedure specifies the sequence of steps for performing a task; therefore, obtaining approval before payment is a procedure. A budget states a numerical allocation or limit of expenditure; hence, the ₹2 lakh spending limit is a budget. Option B reverses these two terms. Exam tip: identify a sequence of steps as a procedure and a monetary amount or spending limit as a budget.