What Can You Do If Your Budget Shows an Annual

question 119

Multiple Choice

What can you do if your budget shows an annual budget deficit?

• A)Liquidate enough savings and investments to meet the total budget shortfall for the year.
• B)Borrow enough to meet the total budget shortfall for the year.
• C)Cut low-priority expenses from the budget.
• D)Increase income.
• E)All of the above.

Identify the characteristics of different forms of business entities.

Apply the business entity concept in various contexts.

Comprehend the function and structure of the four main financial statements.

Understand the distinctions between internal and external users of financial information.

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Definitions:

Informed Guessing

Making decisions or predictions based on available data and insights, even in the absence of complete information.

Risk Environment

An environment that lacks complete information but offers “probabilities” of the likely outcomes for possible action alternatives.

Factual Information

Data or details that are true and can be verified through evidence or observation.

Alternative Courses

Various routes or strategies available for accomplishing an objective or resolving an issue.