In the Context of Budget Preparation, the Master Budget of a Firm

question 62

Multiple Choice

In the context of budget preparation, the master budget of a firm organizes the _____ into a unified whole.

• A) static budget and the cash flow budget
• B) static budget and the financial budget
• C) cash flow budget and the operating budget
• D) financial budget and the operating budget

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Definitions:

Saving

The portion of income not spent on current expenditures or consumption, often put aside for future use or investment.

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

Consumption Function

A macroeconomic concept that describes the relationship between total consumption and gross national income.

Consumption Function

An economic formula that represents the relationship between total consumer spending and total national income.