The Most Useful Budget Figures Are Developed

question 50

Multiple Choice

The most useful budget figures are developed:

• A) By the budget committee.
• B) From the "bottom-up" following a participatory process.
• C) By the CEO.
• D) After the accounting period has begun.
• E) From the "top-down".

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Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate, known as the coupon, usually annually or semi-annually, until its maturity date.

Present Value

The present-day value of future money or cash flows, based on a specific rate of return.

Coupon Bonds

Debt securities that pay holders a fixed interest rate (the coupon) on a periodic basis until the bond matures, at which point the principal amount is repaid.

Par

The face value of a bond or other financial instrument, typically the amount at which it will be paid out upon maturity.