The Usual Starting Point in Budgeting Is to Forecast Net

question 192

True/False

The usual starting point in budgeting is to forecast net income.

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Definitions:

Capitalized

In accounting, this term refers to recording an expense or cost as a capital asset on a balance sheet, rather than as an expense on the income statement.

Tangible Asset

Physical assets that can be touched and have a finite monetary value, such as buildings, machinery, and equipment.

Property, Plant, Equipment

Property, plant, and equipment (PP&E) are long-term tangible assets that are used in the operations of a business and are subject to depreciation.

Disposal

The process of disposing an asset by selling, exchanging, retiring it, or by destroying it.