A Cash Budget Helps You

question 101

Multiple Choice

A cash budget helps you:

• A)monitor and control your finances.
• B)analyze your financial position.
• C)calculate your fixed assets ratio.
• D)calculate your investment turnover ratio.
• E)analyze the use of debt in a capital structure.

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Definitions:

Net Value

represents the final value of an asset or transaction after deducting all costs, expenses, and liabilities.

Capital Surplus

A balance sheet account; the portion of shareholders’ contributions exceeding the par or stated value of shares. Also called additional paid in capital.

Derivative Action

A lawsuit brought by shareholders on behalf of a corporation against third parties, typically involving claims of mismanagement or abuse by corporate officers.

Independent Directors

Board members who are not part of a company's day-to-day operations, ensuring unbiased oversight and reducing conflicts of interest.