A Comprehensive or Overall Formal Plan for a Business That

question 80

Multiple Choice

A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise (or materials) to be purchased, the manufacturing, selling, administrative, and general expense to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet, is called a(n) :

• A) Master budget.
• B) Kaizen budget.
• C) Capital expenditures budget.
• D) Continuous budget.
• E) Operating budget.

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Definitions:

Presentment Warranty

A guarantee made to the person who accepts or pays a negotiable instrument that certain facts are true as of the date of its transfer.

Alteration

A change or adjustment made to something, which can modify its appearance, function, or condition.

Charge Account

An arrangement allowing customers to purchase goods or services on credit and settle the balance periodically, without immediate payment at each transaction.

Maker

The individual or entity that creates or signs a negotiable instrument, committing themselves to pay a specified amount of money to the payee or holder.