___________________ Exists When a Manager Deliberately Underestimates Revenues or Overestimates

question 55

Short Answer

___________________ exists when a manager deliberately underestimates revenues or overestimates cost in an effort to make the future period appear less attractive in the budget than they think it will be in reality.

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Definitions:

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, used to verify the equality of the two totals.

Cash Dividend

A payment made by a company to its shareholders, typically in the form of cash, out of its profits or reserves.

Journalize

The process of recording transactions in a journal, marking the first step in the accounting cycle.

Transactions

The act of buying or selling goods, services, or financial instruments, which can be recorded in the financial records of a business or individual.