Short-Term Financial Plans Are Developed Using the Following Methods

question 20

Multiple Choice

Short-term financial plans are developed using the following methods:
I. Trial and error
II. Simulation programs
III. Optimization models

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

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Definitions:

Carrying Amount

The net value of an asset or liability as presented on the balance sheet, accounting for factors like depreciation or amortization where applicable.

Accrual Basis

Accrual Basis is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid.

Expenses Recognized

Costs that have been incurred in an accounting period and are matched with revenues in the same period, affecting a company's income statement.

Expenses Paid

Outflows or other using-up of assets or incurring of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.