Which One of the Following Best Describes a Master Budget

question 45

Multiple Choice

Which one of the following best describes a master budget?

• A)It is an interrelated long-term plan and operating budgets.
• B)It includes financial budgets and a long-term plan.
• C)It includes interrelated financial budgets and operating budgets.
• D)It is all the accounting journals and ledgers used by a company.

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Definitions:

A Lease

A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset in exchange for payment over a specified period.

Gross Lease

A lease in which the monthly payment made by the tenant remains the same and the landlord pays the operating expenses of the building.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding cost of goods sold.

Leasehold Improvements

Alterations or enhancements made to a leased space by or for a tenant, usually to suit the specific needs of that tenant, which typically become the property of the landlord at the end of the lease term.