What Is True of Budgets

question 43

Multiple Choice

What is true of budgets?

• A)They are voted on and approved by shareholders.
• B)They are used in the planning, but not the control process.
• C)There is a standard form and structure for budgets.
• D)They are used in performance evaluation.

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Definitions:

Data Processing

The collection, manipulation, and processing of data to extract meaningful information or to produce a desired output.

Capital Structure Decision

The choice a company makes regarding the mix of debt and equity that it uses to finance its operations.

Net Working Capital

A financial metric that calculates the difference between a company's current assets and its current liabilities.