What Three Differences Exist Between Long-Range Planning and Budgeting

question 72

Multiple Choice

What three differences exist between long-range planning and budgeting?

• A)amount of detail, content, and emphasis
• B)time periods involved, amount of detail, and content
• C)content, emphasis, and amount of detail
• D)emphasis, time periods involved, and amount of detail

---

Definitions:

Bargain Purchase Option

A clause in a lease agreement that allows the lessee the option to purchase the leased asset at a price below its expected fair market value.

Executory Costs

Executory costs are the ongoing operating expenses in a lease agreement, such as insurance, maintenance, and property taxes, usually borne by the lessee.

Capital Lease

A lease treated as an acquisition of an asset and the incurrence of an obligation on the lessee's balance sheet, indicating a purchase and financing arrangement.

Lease Liability

An obligation representing the present value of future lease payments under a non-cancellable lease.