Your Company Orders and Broadcasts a 30 Second Advertisement During $\bold{not}$

question 103

Multiple Choice

Your company orders and broadcasts a 30 second advertisement during the Super Bowl for $1.2 million.It is legally obligated to pay for this service but has not yet done so.

• A)This is an internal unobservable event so it does \(\bold{not}\) affect the balance sheet.
• B)This is an external unobservable event so it does \(\bold{not}\) affect the balance sheet.
• C)This is an internal observable event that affects the balance sheet.
• D)This is an external observable event that affects the balance sheet.

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Definitions:

Budget Procedure

The process involving the creation, approval, and implementation of a financial plan for a business or an organization.

Top-Down Managerial

A management approach where decision-making and direction come from the top levels of the organization and flow downward.

Profit-Making Businesses

Enterprises or organizations that operate with the primary goal of earning financial profits.

Budgetary Slack

Excess resources set within a budget to provide for uncertain events.