The Flexibility of Financial Plans Is Evident in the Extent

question 89

Multiple Choice

The flexibility of financial plans is evident in the extent that:

• A)Actual profits will deviate from projected profits
• B)The plans can be adapted when conditions change
• C)Use of the plans can be extended
• D)Planning output is the same regardless of economic conditions

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Definitions:

Fair Values

The estimated market value of an asset or liability, based on current prices in an open and competitive market.

Credit Balance

A situation in accounting where the sum of credits in a ledger account exceeds the sum of debits. It often indicates an amount owed to the account holder.

Contingency Payment

A payment that is contingent upon the occurrence of a specific event, not guaranteed to happen.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.