When a Budget Is Formulated, It Is Being Used as A(n)________

question 53

Multiple Choice

When a budget is formulated, it is being used as a(n) ________ tool.

• A)organizing
• B)controlling
• C)planning
• D)leadership

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Definitions:

Accounts Receivable

Debts owed by customers to a corporation for goods or services that have been delivered but remain unpaid.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Cash Flows

The total amount of cash being transferred into and out of a business, after all revenues and expenses have been accounted for.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.