The Financial Asset Is Referred to as a ________ If

question 19

Multiple Choice

The financial asset is referred to as a ________ if the claim is a fixed dollar.

• A) debt instrument.
• B) common equity instrument.
• C) derivative instrument.
• D) preferred equity instrument.

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Definitions:

Sales Budget

A detailed projection of a company’s sales revenue for a certain period, often used as a basis for production, purchasing, and staffing plans.

Service Firm

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Products Purchase

The expenditure a company makes to buy goods that will be sold to its customers.

Manufacturing Overhead Budget

An estimation of all manufacturing costs, excluding direct labor and direct materials, planned for a specific period.