The Practice of Maintaining Budgets for the Same Number of Future

question 112

Multiple Choice

The practice of maintaining budgets for the same number of future periods,revising those budgets as each period is completed and adding a new budget each period,is called:

• A)Master budgeting.
• B)Short-term budgeting.
• C)Zero-based budgeting.
• D)Rolling budgets (or,rolling financial forecasts).
• E)Kaizen (or continuous-improvement)budgeting.

Recognize the legal consequences of forged checks and who bears the financial responsibility in various scenarios.

Comprehend the warranties and liabilities associated with encoding checks in the banking process.

Understand the implications of not reporting unauthorized transactions or forgeries in a timely manner according to banking regulations.

Identify the forms and implications of electronic money in financial transactions.

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and the lower price at which it is sold, representing additional interest expense to the issuer over the bond's life.

Interest Expense

Costs incurred by an entity for borrowed funds, which are recognized on the income statement.

Fixed Asset

Long-term tangible assets, such as machinery and buildings, used in the operation of a business, not expected to be consumed or converted into cash in the short term.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.