Which of the Following Is True of a Budget

question 28

Multiple Choice

Which of the following is true of a budget?

• A)It shows the computation of the interest on a loan.
• B)It is a schedule of personal investments.
• C)It is a list of prepaid expenses.
• D)It is a detailed financial forecast.
• E)It is a set of personal financial objectives.

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Definitions:

Merchandise

Items or products that a company buys to sell to its customers in the course of its business.

Journal Entries

The foundational records in accounting that detail all financial transactions, using debits and credits to maintain balance.

Cash Flow Hedge

A type of hedge that is used to manage exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a forecasted transaction.

Forward Contract

A tailor-made deal between two participants to transfer an asset at a fixed price on a specified future date.