A Planning Horizon of at Least ________ Years Is Reasonable

question 48

Multiple Choice

A planning horizon of at least ________ years is reasonable for any master plan; however,the plan should be updated at least ________ each year.

• A) 3; twice
• B) 5; twice
• C) 7; once
• D) 5; once

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Definitions:

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in its income statement.

Credits

An accounting entry that either increases liabilities and equity or decreases assets, reflective of the dual-entry bookkeeping system.

Rental Receipts

Income received from renting out property or equipment.

Unearned Revenue

Refers to payments received for products or services yet to be fulfilled, a liability on the balance sheet until delivery of service or product.