True or False: A budget reflects a company's long-term goals and projections reflect current reality.

A budget is indeed a tool that reflects a company's long-term goals. It outlines the financial blueprint for achieving those objectives, detailing expected revenues and expenses over a specific period, often a year. By aligning budgetary allocations with strategic goals, companies can ensure that their financial resources are directed towards initiatives that support their overarching mission and vision.

Projections, on the other hand, are typically based on current reality and historical data, providing estimates of future financial performance based on existing market conditions and company performance. They account for various variables such as market trends, economic conditions, and operational efficiencies.

The statement correctly identifies the distinction between a budget, which is more strategic and goal-oriented, and projections that are grounded in actual performance data and current conditions. This alignment allows for effective financial planning and helps in monitoring progress toward the company's long-term aspirations.