Rather Than Build the Current Year Budget on Increases from the Previous

question 98

Multiple Choice

Rather than build the current year budget on increases from the previous year's budget, ________ evaluates the necessity of every item.

• A)zero-based budgeting
• B)zero-based accounting
• C)ground-up budgeting
• D)year-one budgeting

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with the right to share in dividends and the right to vote in company affairs.

Fair Value

Fair value is the estimated price at which an asset or liability could be bought or sold in a current transaction between willing parties, other than in a liquidation.

Equity Method

An accounting technique used to record investments in associated companies.

Fixed Assets

Long-term tangible assets used in a company's operations, such as buildings, machinery, and equipment, which are not typically sold in the course of business.