Which of the Following Statements Is True of the Budgeting

question 76

Multiple Choice

Which of the following statements is true of the budgeting process?

• A)It includes the qualitative targets of a company.
• B)It is a continuous process that encourages communication.
• C)It shows the actual performance of the business.
• D)It leads to slack where managers understate expected expenses.

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Definitions:

Real Estate

Pertains to land and any permanent structures or improvements attached to it, such as buildings, houses, and other property types.

Federal Funds Market

A market for overnight lending and borrowing of reserves among banks; the interbank market for reserves on account at the Fed.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by regulatory bodies.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending.