Which Top-Down Budgeting Method Is Being Employed When Expenditures Are

question 64

Multiple Choice

Which top-down budgeting method is being employed when expenditures are allocated by assigning a budget based on gut feelings?

• A)arbitrary allocation
• B)percentage of sales
• C)affordable method
• D)payout planning
• E)competitive parity

Become adept at assessing short-term creditor perspectives through current position analysis.

Understand the significance and calculation of financial ratios such as days' sales in receivables, inventory turnover, and return on assets.

Appreciate the role of financial ratios in evaluating a company's liquidity, profitability, and solvency.

Recognize how financial ratios can be used for benchmarking against industry averages and evaluating competitive position.

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Definitions:

Fair Housing Act

A U.S. federal law established in 1968 to prohibit discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, or sex.

Hispanics

Term used to describe people with cultural ties to Spain or Spanish-speaking countries, especially those in Latin America.

Native Americans

The indigenous peoples of the United States, including both the mainland and the Native Alaskan communities.

Hyperghetto

A term used to describe extremely impoverished and segregated urban areas characterized by high levels of social isolation and economic deprivation.