How Often Should a Company Prepare Budget Reports

question 109

Multiple Choice

How often should a company prepare budget reports?

• A)as often as demanded by the stockholders
• B)as often as deemed necessary
• C)annually is sufficient if the company is profitable
• D)monthly to be sure the company is operating successfully

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Definitions:

Inventory Turnover

An index that reveals the number of times a business's stock is sold and restocked during a specific period, showcasing how efficiently inventory is managed.

Total Current Assets

Assets of a company that are expected to be used or converted to cash within one year.

Debt/Equity Ratio

Determination of a firm's borrowing dependency, achieved by dividing its liabilities by its shareholder's equity.

Long-Term Debt

Long-term debt refers to loans and financial obligations lasting over one year that a company owes and is recorded on its balance sheet.