An Official Examination of a Financial Report Submitted by an Individual

question 4

Multiple Choice

An official examination of a financial report submitted by an individual or organization to determine whether it accurately represents expenditures, deductions, or other allowances determined by laws and regulations is called a(n) :

• A) line-item budget
• B) audit
• C) cost-benefit analysis
• D) integrated budget

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Definitions:

Accounts Receivable Period

The average number of days it takes for a business to receive payments from its customers for goods or services sold on credit.

Cash Cycle

The time period between the outlay of cash for materials or inventory purchase and the receiving of cash from customer sales, critical for understanding a company's liquidity and management efficiency.

Short-term Financial Planning

The process of identifying a company's immediate financial needs and devising strategies to meet those needs within a year or less.

Collection Period

The average number of days required to collect receivables from customers.