The Task and Objective Method of Budgeting as Well as the Payout

question 59

Multiple Choice

The task and objective method of budgeting as well as the payout plan are both examples of the _____ approach.

• A)trading up
• B)top-down
• C)bottom-up
• D)build-up
• E)trickle up

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Definitions:

Financing Activities

Transactions a company undertakes to fund its operations and expansions, such as issuing equity or taking on loans.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity, investment, and operating activities.

Investing Section

Part of a company's cash flow statement that shows the cash spent on or generated from investment activities, such as buying or selling assets.