Which of the Following Is Not a "Rule of Thumb

question 9

Multiple Choice

Which of the following is not a "rule of thumb" used by budget analysts in review of agency budgets?

• A) Cut departments with "bad" reputations.
• B) Compare proposed budget with prior year and current year budget and actual expenditures to identify areas which may be reduced without great trouble.
• C) Recommend repair and renovation rather than replacement of facilities.
• D) None of the above; all are "rules of thumb"

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Definitions:

Bank Loans

Debt provided by banking institutions that is repayable over a set period of time with interest.

Pledged

Assets that are promised or committed as security for the fulfillment of a debt or an obligation.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Collateral

Collateral is an asset that a borrower offers to a lender to secure a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral.