Budgeting That Involves the Development of a Master Budget to Direct

question 94

Multiple Choice

Budgeting that involves the development of a master budget to direct the firm's activities over the short term is referred to as:

• A) capital budgeting.
• B) operations budgeting.
• C) strategic planning.
• D) None of these answers is correct.

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Definitions:

Asset

An Asset is any resource owned or controlled by a business or an individual that is expected to produce future economic value.

Revenue

The total income generated by a company from its business activities, such as sales of goods and services, before any expenses are deducted.

Cash Coverage Ratio

A measure of a company's ability to pay its debt obligations using its operating cash flow.

Quick Ratio

The Quick Ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.