The Capital Budgets of State and Local Governments Are Intended

question 56

Multiple Choice

The capital budgets of state and local governments are intended to

• A)provide a means of measuring performance.
• B)plan for the costs of expensive items, such as hospitals, school buildings, and other expensive projects, that are not used up during a one-year period.
• C)serve as an alternative to zero-based budgeting.
• D)account for operating materials that are typically used up during a single year.

Understand and calculate dividend yield and price-earnings ratio and their significance to investors.

Identify the reasons for and the accounting treatment of prior period adjustments.

Compute and interpret the book value per share of a company’s common stock.

Understand the significance of dividend per share and how it relates to market price per share and earnings per share.

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Definitions:

Limited Resources

The condition of having finite assets available, necessitating the prioritization and efficient management of resources.

Management Process

The systematic approach involving planning, organizing, leading, and controlling to achieve organizational goals efficiently.

Organizational Objectives

Specific targets that an organization aims to achieve, which guide its operations and strategic planning.

Design-Production Cycle

The interconnected stages involved in developing a product, from initial design through to final production and delivery to customers.