The Starting Point of the Budget Cycle Is

question 75

Multiple Choice

The starting point of the budget cycle is:

• A) Reassess organisational vision and core competencies.
• B) Reconsider long term strategy
• C) Translate strategies and operating plans into financial data.
• D) None of the above.

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Definitions:

Debt Ratio

A leverage ratio that measures the proportion of a firm’s total assets that is acquired with borrowed funds.

Current Liabilities

Debts or obligations that a company needs to pay within one fiscal year or within its normal operating cycle.

Statement of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Financial Statement

A formal document outlining the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.