Sam, the CFO of XYZ Company, finds that in the expenditure budget of the current year, there are
many funds available in the stationery account, whereas there is not much amount left for
employee travel expenses. Sam instructs the budget analyst John to transfer 80% of the stationery
account to the travel expenses account. While transferring the amount, John encountered errors
and approached Sam for a resolution. Sam reviews the situation and clarifies it to John. Choose
what Sam would have explained to John.
A.
There must be some budgetary control enabled on the travel expenses, and a transfer can be
made only after a funds check.
B.
There must be some budgetary control enabled on the stationery account, and a transfer can
be made only after a funds check.
C.
There must be some budgetary control enabled on the stationery and travel expenses
accounts, and a transfer can be made only after a funds check.
D.
It is not possible to transfer amount from one account to another unless the absolute amount is
known. So John should have calculated 80% of the stationery account and then tried to make the
transfer.