A Budget Is the Plan,stated in Financial Terms,of How an Organization

question 60

True/False

A budget is the plan,stated in financial terms,of how an organization expects to carry out its activities and meet its goals.

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Definitions:

Investment Account

An account held at a financial institution that is used to buy and sell securities, such as stocks, bonds, mutual funds, and ETFs.

Net Income

The final profit amount for a company once revenues are reduced by expenses and taxes.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, usually indicated by owning 20% to 50% of the voting stock.

Consolidated Financial Statements

Financial statements that combine and present a parent company's and its subsidiaries' financials as if they were a single entity, consolidating their assets, liabilities, income, and expenses.