The Effectiveness of Any Budgeting System Depends Directly on Whether

question 82

True/False

The effectiveness of any budgeting system depends directly on whether a budget is understood and accepted by top management.

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Definitions:

Owner's Capital

The amount of money and assets invested in a business by its owner, representing the owner's claim against the company's assets.

Operating Cycle

The operating cycle, also known as the cash conversion cycle, is the time it takes for a company to purchase inventory, sell products or services, and collect the cash from these transactions.

Receivables

Money owed to a company by its customers or other parties for goods or services delivered but not yet paid for.

Revenues

Revenues refer to the total income generated by a company from its normal business operations, such as the sale of goods or provision of services.