The Basis to Being Able to Control a Business's Money

question 51

Multiple Choice

The basis to being able to control a business's money is to understand and be able to predict the patterns of cash flows.This is possible by preparing a:

• A)cash disbursements budget.
• B)comprehensive budget.
• C)cash receipts budget.
• D)cash budget.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, but not control those policies.

Share Ownership

Denotes holding equity in a company, representing a claim on part of the company's assets and earnings.

Policy Decision Making

The process by which governments or organizations establish rules, directives, and guidelines to influence and determine present and future decisions.