What Is a Budget

question 46

Multiple Choice

What is a budget?

• A) The estimated number of people required to complete a manufacturing project
• B) An estimate of costs submitted to a buyer in order to make a sale
• C) An estimate of the cash balance for the year
• D) A detailed estimate of receipts and expenditures for a given period of time
• E) An estimate of research and development costs

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Definitions:

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets.

Return On Equity

A profitability measure that calculates the amount of net income returned as a percentage of shareholders' equity.

Earnings Per Share

A measure of a company's profitability that calculates the portion of a company’s profit allocated to each outstanding share of common stock.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.