A Budget Is a Statement of a Corporation's Programs in Dollar

question 70

Multiple Choice

A budget is a statement of a corporation's programs in dollar terms.Which is not true of the budgetary function?

• A) It is used in planning and control.
• B) It serves as a detailed plan of strategy in action.
• C) Only one budget is necessary to capture all programs.
• D) It details the impact on the firm's future financial situation.
• E) It is used as a means of measuring success based on certain criteria.

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Definitions:

Working Capital Decision

Decision making related to managing a company's current assets and liabilities to ensure operational efficiency and financial stability.

Capital Budgeting

The process businesses use to evaluate potential major projects or investments, assessing the value they may add to the company.

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating how capital-intensive a business is.

External Financing Needed (EFN)

The amount of financing required to balance both sides of the statement of financial position.