A Comprehensive or Overall Formal Plan for a Business That

question 54

Multiple Choice

A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expenses to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet, is called a:

• A) Master budget.
• B) Cash budget.
• C) Capital expenditures budget.
• D) Rolling budget.
• E) Production budget.

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Definitions:

Automobile Insurance

A type of insurance policy that provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise.

Premium

An amount paid periodically to the insurer by the insured for covering his risk or the cost above the nominal value of something.

Temporary Insurance

Short-term coverage designed to provide protection for a limited period, often while awaiting the implementation of permanent insurance.

Binder Agreement

A temporary insurance contract providing coverage until a formal policy is issued.