A Characteristic of a Good Budget Is

question 108

Multiple Choice

A characteristic of a good budget is

• A)that it is easy to understand by top management.
• B)that is encompasses every account in the firm's accounting system.
• C)that management is satisfied that it will provide shareholders with an adequate return on their investment.
• D)that it is easy to understand and communicate to all within the firm.

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Definitions:

Coupon Yield

The per annum rate of interest a bond delivers, depicted as a proportion of its par value.

Yield to Maturity

The complete earnings projected from a bond assuming it is retained up to its expiration date.

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, incorporating all coupon payments and the face value received at maturity.

Coupon Rate

The interest payment per annum on a bond, depicted as a percentage of its face value.