Budgets That Are Periodically Revised and Have New Periods Added

question 15

Multiple Choice

Budgets that are periodically revised and have new periods added to replace those that have lapsed are called:

• A)Production budgets.
• B)Sales budgets.
• C)Cash budgets.
• D)Rolling budgets.
• E)Capital expenditures budgets.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the portion of a company's earnings paid out to shareholders as dividends, expressed as a percentage of the company's total earnings.

Earnings per Share

A company's profit divided by its number of common outstanding shares.

Book Value per Share

This is the equity available to common shareholders divided by the number of outstanding shares, indicating the value per share if the company were liquidated.

Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit, calculated as net income divided by total assets.