Budgets Are

question 58

Multiple Choice

Budgets are

• A) useful for businesses, but too restrictive to be used by individuals or households.
• B) a financial plan of projected revenues and expenses.
• C) just another name for cash flow statements.
• D) only helpful to people who earn more than $50,000 per year.

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Definitions:

Accounts Payable

Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Computer

An electronic device capable of manipulating data or information, allowing for storage, retrieval, and processing to perform various tasks.

Capital

The financial resources available for use, such as cash, goods, or property, invested to create profit.

Shift of Assets

The reallocation or transfer of assets from one part of a company to another, or between companies, which can affect financial statements and tax liabilities.