A Major Element in Budgetary Control Is

question 107

Multiple Choice

A major element in budgetary control is

• A) the preparation of long-term plans.
• B) the comparison of actual results with planned objectives.
• C) the valuation of inventories.
• D) approval of the budget by the stockholders.

---

Definitions:

Direct Non-Controlling Interest

A proportional interest in a subsidiary not held by the parent company, representing a share in the equity and profits of the subsidiary.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to be reinvested in its core business or to pay debt.

Limited

Describes a form of company structure that legally protects its shareholders' liability to the amount of capital they invested.

Consolidation Adjustment Entries

are journal entries made in the preparation of consolidated financial statements to eliminate transactions between entities within the same group, ensuring accurate representation of financials as if the group was a single entity.