Which of the Following Statement Is Correct Regarding a Continuous

question 185

Multiple Choice

Which of the following statement is correct regarding a continuous budget?

• A)The budget is prepared for a one-year period that corresponds to the company's fiscal year.
• B)A continuous budget is a monthly budget.
• C)As a month/period expires in the budget, an additional month/period in the future is added so the company always has a 12-month budget on hand.
• D)None of these

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Definitions:

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.

Fed's Policy

The set of monetary policy guidelines and actions taken by the Federal Reserve, the central banking system of the United States, to control the money supply and achieve macroeconomic goals.

High Inflation

A situation characterized by an excessive and accelerating increase in the prices of goods and services across the economy.

Expectations

Beliefs or forecasts about future events that affect economic decisions, such as consumption, savings, and investment.