A Budget Is the Quantitative Expression of a Proposed Plan

question 210

True/False

A budget is the quantitative expression of a proposed plan of action by management for a specified period.

Identify and describe the principles of internal control.

Explain the significance and computation of days' sales uncollected ratio.

Understand the purpose and application of a voucher system in controlling cash disbursements.

Describe effective cash management principles and their application in business operations.

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Definitions:

Cash Flow To Creditors

A measure used in finance to determine the net amount of cash that a company pays to its creditors over a period, often used in analyzing financial health.

Free Cash Flow

The amount of cash generated by a company after accounting for operational expenses and capital expenditures, indicating the company's liquidity and financial flexibility.

Interest Payments

Payments made regularly by a borrower to a lender for the use of borrowed money, typically part of the repayment terms of a loan.

Liquidity

How effortlessly an asset can be liquidated without majorly altering its market price.