Which of the Following Statements Best Describes a Budget

question 66

Multiple Choice

Which of the following statements best describes a budget?

• A) It is a statement of expected results expressed in numerical terms.
• B) It is document that describes the organizational goals and objectives.
• C) It is a computerized system designed to produce information.
• D) It is a graphical depiction of the relationship of volume of operations to profits.
• E) It is the point at which sales revenues are the same as expenses.

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Definitions:

Tangible Capital

Physical assets owned by a firm or individual that are used in the production of goods and services, such as machinery, buildings, and vehicles.

Capital

The collection of physical and financial assets used by an individual or organization to produce goods and services.

Services

Services like accounting, banking, cleaning, consulting, education, insurance, professional knowledge, medical care, and transportation that cannot be physically touched.

Goodwill

An intangible asset on a company's balance sheet that represents the premium paid over the fair market value of the acquired assets in a business acquisition.