A Variant of Fiscal-Year Budgeting Whereby a Twelve-Month Projection into the Future

question 150

Multiple Choice

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:

• A) flexible budgeting
• B) continuous budgeting
• C) zero-based budgeting
• D) master budgeting

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Definitions:

Par Value

The nominal or face value of a stock or bond, which is the amount stated on the certificate or instrument.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitled to receive the bond's face value at maturity and periodic interest payments.

Debt-To-Equity Ratio

This measure indicates the proportionate use of debt and shareholder equity in asset financing for a company.

Par Value Bonds

Bonds that are issued and redeemed at their face value, the value printed on the bond itself.