A Major Feature of Incremental Budgeting Is That It

question 115

Multiple Choice

A major feature of incremental budgeting is that it

• A)provides small increases in the current budget over the previous year's budget.
• B)greatly inflates government spending each year.
• C)fragments the budget into many small items,making it hard to plan for a unified budget.
• D)reduces current budgets by small amounts over successive years.
• E)reevaluates the budgetary base on which past budgets were built.

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Definitions:

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.

Capital Spending

Expenditures by a business for acquiring or upgrading physical assets such as property, industrial buildings, or equipment.

Earnings Estimate

A projection or forecast of a company's future earnings per share, often provided by analysts.