What Type of Budget Is Most Appropriate for Control Purposes

question 78

Multiple Choice

What type of budget is most appropriate for control purposes?

• A)static budget
• B)flexible budget
• C)continuous budget
• D)incremental budget

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Definitions:

Cash Dividend

A direct payment of profits made by a company to its shareholders, usually in cash.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or to pay debt, rather than being distributed to shareholders as dividends.

After-tax Earnings

The net income a company generates after all taxes have been deducted from total revenue.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which is used to finance its overall operations and growth.