The Budget Method That Maintains a Constant Twelve-Month Planning Horizon

question 162

Multiple Choice

The budget method that maintains a constant twelve-month planning horizon by adding a new month on the end as the current month is completed is called:

• A)an operating budget.
• B)a capital budget.
• C)a continuous budget.
• D)a master budget.

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Definitions:

Misapplication

The improper or dishonest use of funds, resources, or assets for purposes other than those intended.

Trust Funds

A financial arrangement where assets are held and managed by one party for the benefit of another.

Personal Assets

Assets owned by an individual, including but not limited to, real estate, bank accounts, investments, and personal property.

Capital Contributions

Investments or funding provided by owners or shareholders to a business, typically in the form of cash or assets, in exchange for an ownership stake.