The Most Useful Budget Figures Are Developed

question 94

Multiple Choice

The most useful budget figures are developed:

• A)From the "top-down".
• B)From the "bottom-up" following a participatory process.
• C)By the budget committee.
• D)By the CEO.
• E)After the accounting period has begun.

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Definitions:

Outstanding Common Stock

Shares of a company's common stock that have been issued and are in the hands of investors, including those held by the public and company insiders but excluding treasury shares.

Annual Amortization

The procedure of methodically deducting the starting cost of an intangible asset throughout its period of utility.

Retained Earnings

The portion of net profits not distributed to shareholders but reinvested in the business or kept as reserve.

Net Income

The profit a company retains after deducting every expense, tax, and cost from its total income.