The Time Coverage of a Budget Should Be

question 5

Multiple Choice

The time coverage of a budget should be:

• A)one year.
• B)guided by the purpose of the budget.
• C)longer rather than shorter.
• D)covered by the period of the design,manufacture and sale of the product.

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Definitions:

Marked-To-Market

Occurs when the value of a security is valued at its current market value rather than its original price or its exercise value.

Credit Default Swap

A financial instrument that enables an investor to transfer or mitigate their credit risk by exchanging it with another investor.

Insurance Contract

A legally binding agreement between an insurer and the insured, where the insurer agrees to compensate for certain losses in exchange for a premium.

Long Hedges

Occur when futures contracts are bought in anticipation of (or to guard against) price increases.