Verbal Test Question 21 – Directorate Budget Report
Read the passage and decide whether the statement is True, False or Cannot Say. Use only the information provided.
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Passage
The directorate's annual budget is £24 million. At the end of the third quarter, it had spent £17.6 million and forecast total spending of £23.7 million by year end. The forecast includes £800,000 reserved for contracts that have already been signed but not yet invoiced. Managers have been asked to review planned discretionary spending because several projects may cost more than expected.
Statement
The year-end spending forecast already takes account of money reserved for signed contracts that have not yet been invoiced.
Answer options
- True
- False
- Cannot Say
Click to reveal the answer
Correct answer: True
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