A Hospital's Budget Is Incremental

question 17

Multiple Choice

A hospital's budget is incremental. Which statement by the nurse manager reflects use of this type of budget?

• A) "The finance department sent me the budget worksheet with last year's expenses."
• B) "We have $1,000 left in our education account that we need to spend before the year is over. Who has an idea for a class to attend?"
• C) "I have to justify all our activities as if we have never done them before."
• D) "I like this type of budget preparation because it is fairly simple and straightforward."
• E) "In order to create next year's budget, I am to start at 80 percent of what we budgeted last year."

---

Definitions:

Dividend Revenue

Income received from owning shares in a company when the company distributes some of its earnings to shareholders.

Debt Investments-HTM

Debt Investments-HTM (Held-to-Maturity) are debt securities a company intends and is able to hold until they mature, recorded at amortized cost.

Bonds Payable

Long-term liabilities representing money a company owes to holders of its bonds, which must be repaid at a future date.

Debt Investments-HTM

Investments in debt securities intended to be held to maturity, accounting for fixed-income investments until they are redeemed.