Which One of the Following Is Necessary If a Company

question 15

Multiple Choice

Which one of the following is necessary if a company expects its budget to be effective?

• A)The company must be operating at less than capacity.
• B)The budget period must cover more than one year.
• C)The company's organizational structure must be sound.
• D)The company must have sufficient cash for operations.

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Definitions:

Financial Statements

Comprehensive reports created to communicate a company's financial performance and position during a specific period, often including a balance sheet, income statement, and cash flow statement.

Loss on Disposal

The monetary deficit experienced when selling an asset below its recorded value.

Income Statement

A financial statement that shows a company's revenue and expenses, resulting in a net profit or loss over a specified period.

Accumulated Depreciation

The total depreciation of an asset up to a single point in its life, representing how much of its value has been used up over time.